| FTC Bid to Stop Handbag
Merger of Capri & Tapestry Day
3 Has Expert Citing Price Up 17%
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
Sept 11 – At Day 3 of the
hearing on the US Federal Trade
Commission's bid to enjoin the
merger of Tapestry and Capri
started up before U.S. District
Court for the Southern District
of New York Judge Jennifer L.
Rochon, Inner City Press was
there, from the thread here,
more on X for Subscribers here
and Substack here
FTC expert Dr. Loren Smith on the
stand, testifying how Capri / Michael Kors
merger would incentivize price increases.
FTC lawyer: What is your merger simulation
analysis? Dr. Loren Smith: It takes into
account responses by other market
participants, to predict like effects. FTC
lawyer: Do you have a prediction? Smith: It
was increase price by 17%
FTC expert Smith: I used COGS - Cost Of Goods
Sold. FTC lawyer: What is relevant for entry
to be a relevant mitigating factor in the
analysis of mergers? Smith: There has to be a
change in the trend, and whether entry would
be significant enough
Tapestry's lawyer: Did you work on FTC v. Sysco?
FTC expert Dr Smith: Yes.
Q: In the case, did the court express concern
-
Smith: I'll take your representation. But on
the next page-
More on X for
Subscribers here
and Substack here
The case is
Federal Trade Commission v.
Tapestry, Inc. et al.,
1:24-cv-3109 (Rochon)
***
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