A federal judge has blocked the proposed $8.5 billion merger between Tapestry, the parent company of Coach and Kate Spade, and Capri Holdings, owner of Michael Kors, siding with the Federal Trade Commission (FTC) on antitrust grounds. Judge Jennifer Rochon ruled that the merger would likely lessen competition in the accessible-luxury handbag market, leading to higher prices for consumers. The FTC argued that the companies mainly compete with each other rather than with either mass-market or true-luxury brands, which supports the antitrust concerns. Despite Tapestry's claims of sufficient market competition, the ruling is a significant victory for the FTC, which is actively pursuing multiple antitrust actions. Tapestry's stock rose following the decision, while Capri's fell sharply. The case will now proceed to the FTC's in-house administrative court for further proceedings.