There is good competition and bad competition.

Pricing your product unsustainably vs a competitor to gain market share is regarded as "bad competition" and has historically been seen as anticompetitive.

It does not benefit the consumer in the long run, because the goal is to use your increased funding or cash reserve to wipe your competition out of the market, decreasing competition in the long term.

Then, once your competition is gone, and you've entrenched yourself, you do a rug pull.