You coud say: the practice of setting prices so low as to crowd out the competition.
Or: setting prices so low that the competition is (or will be) (easily) crowd out.
Or: setting the price of goods and services too low for the competition to be able to rival.
I'm using alternative verbs to "compete" (rival, crowd out) in order to avoid the "repetition" (competition - compete).
As to the structure for + object + infinitive, it's used especially after certain adjectives (essential, important, pointless, etc), with "too" and enough" with any adjective (too beautiful for..., big enough for...) and after a few verbs (as far as I know, the verbs arrange, suit, wait and take, but maybe others too). "To take" in the meaning of "the time it takes: "it takes forty minutes for the cake to cook (or to bake)".