What us predatory pricing?

Predatory pricing is a competitive strategy where a company sets its prices extremely low, often below cost, to drive competitors out of the market or deter new entrants. The goal is to gain market share by creating a financial strain on rivals, ultimately allowing the predator to raise prices once competition is diminished. This practice is considered anti-competitive and is subject to legal scrutiny in many jurisdictions. However, proving predatory pricing can be complex, as it requires demonstrating both intent and the ability to recoup losses after competitors have exited the market.