FTC sues to block $8.5 billion merger of Coach and Michael Kors owners

The Federal Trade Commission is suing to block Tapestry's $8.5 billion acquisition of Capri Holdings, saying the deal would harm consumers by reducing competition and raising prices in the affordable luxury sector.

Monday's federal court filing by the FTC challenges the proposed deal that would have one company controlling six fashion brands: Tapestry's Coach, Kate Spade and Stuart Weitzman and Capri's Michael Kors, Versace and Jimmy Choo.

The acquisition could have a negative impact on the millions of American shoppers who now benefit from the head-to-head rivalry between Tapestry and Capri, as well as on the roughly 33,000 workers employed by both companies worldwide, the FTC stated.