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.
Antitrust issues in e-commerce
Furthermore, the growth of technology has significantly affected antitrust and competition analysis. The importance of innovation, the dynamic nature of the...