Predatory pricing refers to the practice of setting prices for goods or services at an artificially low level in order to drive competitors out of the market and gain a dominant position. This tactic is often used by large companies with significant resources to undercut smaller businesses and force them to either lower their prices or go out of business. It is considered a form of anti-competitive behavior and is illegal in many countries. The goal of predatory pricing is not to make a profit in the short term, but rather to eliminate competition and ultimately raise prices once a monopoly is established. This can harm consumers by limiting their choices and potentially leading to higher prices in the long run.