Is the FTC blocking the next luxury handbag empire?
The Federal Trade Commission is suing to stop an $8.5 billion merger that would unite some of the world's most recognizable luxury brands under one roof.
FTC Chair Lina Khan is challenging Tapestry's attempt to acquire Capri Holdings. The lawsuit argues that the deal would stifle competition and drive up prices within the affordable luxury handbag market.
If successful, the merger would give Tapestry control over a massive portfolio, including Coach, Kate Spade, Stuart Weimanz, Michael Kors, Versace, and Jimmy Choo. The FTC warns this consolidation threatens the rivalry that benefits millions of American shoppers and the 33,000 employees working for both companies globally.
