FTC seeks to block Kate Spade, Michael Kors merger

The Federal Trade Commission is asking a national justice successful New York to artifact the $8.5 cardinal merger of Tapestry, the institution down Coach, Kate Spade, and Capri, which controls Michael Kors.

In April, the FTC sued to artifact the sale, arguing that these brands predominate what's known arsenic the "accessible luxury" marketplace and that if they combined, consumers would endure by paying higher prices.

"This has to beryllium the archetypal clip the absorption of a national tribunal proceeding turned to a $279 Kate Spade tote described arsenic 'colorful, joyful, feminine, greenish and achromatic seen connected Emily successful Paris," Senior investigative newsman and analogous Aaron Katersky said connected "Good Morning America," connected Tuesday.

Tapestry argues the FTC is ignoring the world of a marketplace, successful which consumers person a batch of choices, suggesting it takes a specified stroll done Bloomingdale's oregon Macy's to spot Gucci, Kors and Calvin Klein bags warring for attention.

Michael Kors himself testified past period during a hearing, telling the justice there's already plentifulness of contention for handbags, noting that helium learned astir 1 marque erstwhile helium saw a photograph of popular superstar Taylor Swift wearing an Aupen container akin to those made by Kate Spade.

Kors besides testified his handbags person "reached a constituent of marque fatigue" and a lawyer arguing successful favour of the merger said it would revitalize the Michael Kors brand, truthful consumers person yet different choice. The goal, helium said, is to merchantability much handbags to consumers.

The justice took these arguments nether advisement and could regularisation astatine immoderate time.