US sues to block Tapestry's Capri deal citing handbag market domination

The US Federal Trade Commission is suing to block Coach parent Tapestry’s $8.5 billion deal to buy Michael Kors owner Capri. The FTC claims the merger would eliminate competition and harm consumers. Tapestry had offered to acquire Capri in August, with hopes of creating a US fashion giant to compete with European rivals like LVMH. However, the FTC argues that the proposed merger would limit competition on price, discounts, promotions, innovation, design, marketing, and advertising. Tapestry and Capri have received regulatory clearance in the EU and Japan for the deal.