Hoover Color Corporation alleges that Bayer Corporation, its supplier, discriminated in favor of Bayer’s larger distributors of Bayferrox by implementing a volume-based incentive discount pricing system. Under this system, the price each distributor paid for Bayferrox depended on the total amount of the product it purchased. 

Bayer began its system of volume-based incentive discounts when it was building a large manufacturing plant that had high fixed costs. Bayer pursued its volume-based pricing strategy in order to obtain the bulk orders necessary to make the new plant profitable. Hoover sued Bayer for price discrimination. Is Bayer’s price discrimination protected by the meeting competition defense? Explain.