The power-buyer defense to antitrust allegations says that a merger that increases the concentration of market power is not anticompetitive so long as purchasers are large, sophisticated, and have bargaining power.

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The power-buyer defense is a valid argument in antitrust cases, as long as the purchasers meet the criteria of being large, sophisticated, and having bargaining power. This defense assumes that such buyers can successfully negotiate lower prices and demand better conditions from suppliers, even in a concentrated market. However, the power-buyer defense is not automatically applicable in all situations, and courts will analyze each case on its own facts and merits.

The Power-Buyer Defense to Antitrust Allegations Says That a Merger