From CNBC: 2024-09-12 17:12:43

Debate over an $8.5 billion merger between Tapestry and Capri, which would combine six fashion brands, continues in a Manhattan courtroom. The Federal Trade Commission argues the merger would reduce competition and harm consumers. This case could shape the future of the luxury fashion market, impacting prices and options for shoppers.

Tapestry and Capri defend the merger, citing the need to stay competitive in a rapidly changing industry. They argue the deal will allow them to cater to a wider range of consumers while keeping up with evolving trends. Competing in the fashion market means adapting to new brands and consumer preferences while maintaining quality and value.

The merger is under scrutiny for potentially raising prices and decreasing product quality, according to the FTC’s economist witness. The combined company could hold significant market share, leading to price hikes of 15% to 17% on their goods. Concerns about consumer harm due to lack of competition and potential monopolization of the handbag market are at the center of the antitrust trial.



Read more at CNBC: Tapestry Capri antitrust trial: Key questions about merger