Farrell and Shapiro (2008) have proposed a test – called the Upward Pricing Pressure (UPP) test – to evaluate potential unilateral effects of horizontal mergers. The general conclusion that seems to emerge from this comment is that the UPP test proposed by Farrell and Shapiro (suitably interpreted and properly implemented) could be useful for gauging potential unilateral effects in a variety of industries. In particular, the UPP test – or other “price pressure indices” – could be used, possibly together with other considerations, to establish a “safe harbor” for unilateral effects and/or a presumption of potentially adverse unilateral effects.
Insights from the final panel at the CRA Brussels Conference 2025: Shaping the future of digital regulation and competition
The closing panel from 2025 CRA Brussels Conference, “Digital Regulation in Action: The DMA, AI, and the Future of Competition” moderated by Dr Matteo Foschi