FTC Sues to Block Tapestry-Capri Merger, Citing Handbag Market Domination

The U.S. Federal Trade Commission (FTC) said on Monday that it was suing to block luxury fashion holding company Tapestry’s $8.5 billion acquisition of Capri Holdings over market-domination concerns. The deal is expected to combine six luxury fashion brands owned by the two companies: Tapestry’s Coach, Kate Spade, Stuart Weitzman, and Capri’s Michael Kors, Versace, and Jimmy Choo. The FTC said the proposed merger could deprive American consumers of the benefits of the companies’ head-to-head competition on price, discounts, promotions, innovation, design, marketing, and advertising. “Today, Coach, Kate Spade, and Michael Kors continuously monitor each other’s handbag brands to determine pricing and performance, and they each use that information to make strategic decisions, including whether to raise or lower handbag prices,” it said in a statement....