F.T.C. Said to Consider Blocking Major Fashion Merger

The Federal Trade Commission is preparing to sue to block a luxury fashion merger worth $8.5 billion. The deal aims to combine Tapestry’s Coach and Kate Spade with Capri’s Versace and Michael Kors, creating a competitor for European luxury brands. Monopoly cases in the fashion industry are rare due to ample competition. Investors have doubts about the deal’s completion, as Capri’s shares have fallen while Tapestry’s have risen. U.S. regulators may argue that the merger could limit competition on price. The case may attract political scrutiny but is not seen as a way to protect consumers.