Predatory pricing is a strategy used by companies to set their prices extremely low, often below their costs, to drive competitors out of the market. The goal is to attract more customers by offering cheaper products or services, making it difficult for other businesses to compete. Once the competition is eliminated, the company can raise prices again to increase profits. This practice can harm the overall market by reducing competition, which may lead to higher prices and fewer choices for consumers in the long run. Regulatory authorities often monitor predatory pricing to ensure fair competition and protect consumers from potential monopolies.