Regulatory capture occurs when a regulatory agency, created to act in the public interest, instead advances the interests of the industry it is supposed to regulate. This can happen when the agency becomes dominated by the very companies or sectors it oversees, leading to biased decision-making that favors those entities over the public. The phenomenon can result in weaker regulations, reduced oversight, and policies that benefit specific industries, such as banking or energy, rather than the general population. This undermines the effectiveness of regulations and can lead to negative consequences, such as financial crises or environmental harm.