The power-buyer defense to opposition to a merger can be used when:

Question

Quizplus · Accepted Answer

The power-buyer defense is relevant when the firm's customers are sophisticated and powerful buyers who can effectively negotiate with the merged firm to set competitive prices and terms. It is less applicable when the customers are widely dispersed or highly concentrated, as they may not have the same bargaining power or coordination. Having only one customer or being in a diverse range of industries are also not necessarily indicative of a power-buyer defense.

The Power-Buyer Defense to Opposition to a Merger Can Be