FTC Blocks $8.5 Billion Merger Between Tapestry and Capri to Protect Workers and Consumers

The Federal Trade Commission's decision reflects a broader shift in antitrust enforcement, prioritizing labor and consumer impacts over traditional economic metrics.

The FTC's lawsuit against the merger of Tapestry and Capri Holdings aims to prevent reduced competition in the 'accessible luxury' handbag market, potentially leading to higher prices and fewer choices for consumers.
The challenge also addresses potential harm to workers, citing concerns that the merger could lead to lower wages and diminished workplace conditions for the companies' 33,000 employees.
Both Tapestry and Capri defend the merger, arguing it is necessary for competitiveness in a tough luxury market, but the FTC highlights risks of increased market dominance and less innovation.
Legal experts and industry leaders debate the implications of the merger, with some suggesting it could stifle competition while others believe it may invite new competitors.
The FTC's action is part of a broader trend of antitrust enforcement that considers a range of effects on the public, including employees and small businesses, not just consumers.

The American Prospect