FTC Sues to Block Tapestry-Capri Merger, Citing Handbag Market Domination

The $8.5 billion deal is expected to combine six luxury fashion brands owned by Tapestry and Capri.

The Federal Trade Commission (FTC) building is seen in Washington, D.C., on Sept. 19, 2006. Paul J. Richards/AFP via Getty Images

The U.S. Federal Trade Commission (FTC) said on Monday that it was suing to block luxury fashion holding company Tapestry’s $8.5 billion acquisition of Capri Holdings over market-domination concerns.

The deal is expected to combine six luxury fashion brands owned by the two companies: Tapestry’s Coach, Kate Spade, Stuart Weitzman, and Capri’s Michael Kors, Versace, and Jimmy Choo.