Antitrust On The Runway: Critical Analysis Of FTC’s Blocking Of Tapestry-Capri Merger
- IJLLR Journal
- 19 hours ago
- 1 min read
Prakriti Dutta, Symbiosis Law School, Pune
Vaishnavi, Symbiosis Law School, Pune
Introduction
In August 2023, Tapestry Inc., the parent of Coach, Kate Spade, and Stuart Weitzman, announced its bid for Michael Kors, Versace, and Jimmy Choo owner Capri Holdings Ltd. for $8.5 billion. The move was designed to create a U.S.-based luxury conglomerate capable of competing with Europe’s LVMH and Kering giants. But the proposed merger between these two entities was opposed by the Federal Trade Commission (“FTC”) on the ground that the merger would hinder fair competition within the “accessible luxury handbag” market in future. In April 2024, the FTC brought a suit to block the merger, and in October 2024 the Southern District of New York granted a preliminary injunction to the regulator.
With slim prospects of success on appeal, Tapestry and Capri terminated the agreement in November 2024. This case is one of the most significant antitrust actions involving the fashion industry in years and provides a useful insight into looking at how traditional antitrust concepts have been applied in a brand-sensitive industry.
This research article analyses the legal, economic, and comparative aspects of the FTC’s intervention. It critiques the legal rationale followed by the court, examines the precedents drawn upon, and analyses the implications of this decision for the luxury fashion market. It also includes a comparative overview of the way in which such a similar merger could have been dealt with under Indian competition law. In so doing, the paper takes on the voice of an antitrust enforcement legal researcher who aims to critically analyse a significant case study in antitrust enforcement.
