Washington, D.C. — Following news that the Federal Trade Commission (FTC) has successfully blocked the $8.5 billion Tapestry-Capri merger—with US District Judge Jennifer Rochon issuing a preliminary injunction after ruling the deal would significantly reduce competition in accessible-luxury handbag market—the American Economic Liberties Project released the following statement.

“This is yet another decisive victory for the FTC, and once again, proves the durability of this administration’s reinvigorated approach to antitrust enforcement,” said Nidhi Hegde, Interim Executive Director of the American Economic Liberties Project. “The court’s ruling—which positively cites the FTC and DOJ’s 2023 Merger Guidelines—rightly recognizes that this $8.5 billion deal would lead to undue concentration and harm in the accessible-luxury handbag market, which is an important product category for millions of consumers across the country. In blocking the deal, the FTC is ensuring that shoppers benefit from competitive prices, innovation, and quality products, rather than suffering from one monopolist’s dominance. We’re thrilled to see the FTC prove that protecting competition is essential in all industries, including fashion.”

Tapestry Inc., the parent company of brands like Coach, Kate Spade, and Stuart Weitzman, sought to acquire Capri Holdings Limited, which owns Michael Kors, Versace, and Jimmy Choo, in an $8.5 billion deal. The FTC filed a lawsuit to block the merger, arguing that it would substantially lessen competition in the accessible-luxury handbag market by combining two major competitors that dominate over 50% of the market. The court agreed with the FTC’s analysis, concluding that the merger would likely lead to higher prices and reduced product quality for consumers, while stifling competition and innovation in the handbag industry.

Learn more about Economic Liberties here. 

###

The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.