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A federal judge in New York City is set to decide whether Tapestry can merge with Capri, combining six fashion brands under one company. The FTC has sued to block the $8.5 billion deal, arguing it would reduce competition and limit affordable handbag options for consumers. The trial has raised questions about competition in the handbag industry and potential consumer harm from the merger. Tapestry and Capri, however, argue that the deal will help them stay competitive in a changing market with evolving consumer preferences. The outcome of the trial could have significant implications for the fashion industry and consumer choices. Investors are closely monitoring the trial’s impact on Tapestry and Capri’s stock prices.

Key questions in the trial include the level of competition in the handbag industry and whether the merger would harm consumers. The FTC claims that the combined company would have too much market power, leading to higher prices and lower quality products. Tapestry and Capri’s executives argue that the industry is highly competitive, with a wide range of brands vying for consumer attention. They maintain that the merger would allow them to better compete and offer more choices to consumers.

Tapestry’s CEO testified that the merger aims to expand the reach of their brands and cater to a diverse customer base. Internal documents revealed the company’s strategic approach to the acquisition and plans to grow all of its brands, especially those of Capri. The trial is ongoing, with more witnesses expected to testify in the coming days. The outcome of the case will shape the future of the fashion industry and consumer options in the market.

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