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Upward Pricing Pressure Analysis: Critical Issues in Recent Applications

Lars Wiethaus and Rainer Nitsche, Journal of European Competition Law & Practice, November 2014

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Upward pricing pressure (UPP) analysis uses proxies of the closeness of competition between the merging parties in order to assess the price effect of a merger. It was introduced as a screening device to identify mergers that required in-depth analysis. In so doing, UPP accounts for different degrees of competition, whereas screening based on market shares would require binary presumptions of whether or not to include certain goods and firms into the relevant market.

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