The US merger guidelines introduce Gross Upward Pricing Pressure Index -GUPPI- to score merger’s potential unilateral effects

A GUPPI Revolution in the EU?* The new U.S. Horizontal Merger Guidelines, issued in August 2010, introduce the so-called GUPPI test, the Gross Upward Pricing Pressure Index. According to the U.S. Guidelines, “[a]dverse unilateral price effects can arise when the merger gives the merged entity an incentive to raise the price of a product previously sold by one merging firm and thereby divert sales to products previously sold by the other merging firm, boosting the profits on the latter products. Taking as given other prices and product offerings, that boost to profits is equal to the value to the merged firm of the sales diverted to those products. The value of sales diverted to a product is equal to the number of units diverted to that product multiplied by the margin between price

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  • Skadden, Arps, Slate, Meagher & Flom (Brussels)

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Frederic Depoortere, The US merger guidelines introduce Gross Upward Pricing Pressure Index -GUPPI- to score merger’s potential unilateral effects, 19 August 2010, e-Competitions Bulletin August 2010, Art. N° 35226

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