F.T.C. Files Lawsuit to Block Tapestry’s Acquisition of Capri in Fashion Industry


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The Federal Trade Commission on Monday filed a lawsuit to prevent Tapestry’s $8.5 billion acquisition of Capri, a significant merger in the fashion industry that would unite renowned brands such as Coach, Kate Spade, Michael Kors, and Versace.

Regulatory Concerns

This legal action is an uncommon step by the agency in the fashion sector, where competition is typically robust. Under the leadership of Chair Lina Khan, the F.T.C. has been actively challenging large corporate powers in various sectors. Prior cases include attempts to block mergers like Kroger and Albertsons, Meta’s acquisition of Within, and Microsoft’s bid for Activision.

Antitrust Implications

The F.T.C.’s primary concern lies in the impact on “accessible luxury” accessories, which encompass the more affordable products of Coach, Kate Spade, and Michael Kors. The agency warns that the merger could lead to decreased competition, potentially resulting in higher prices for consumers and adverse effects on workers’ wages and working conditions.

F.T.C. Director Henry Liu stated, “With the aim of evolving into a serial acquirer, Tapestry’s move to purchase Capri could solidify its dominance in the fashion market.”

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