NEW YORK, Sept 9 (Reuters) - The U.S. Federal Trade

Commission will urge a federal judge in New York to block

Tapestry's $8.5 billion merger with rival handbag maker

Capri Holdings ( CPRI ) at a trial beginning on Monday, arguing

it will eliminate fierce competition in the market for

"accessible luxury."

The FTC argues the merger announced in August 2023 would

eliminate head-to-head competition between Tapestry's Coach and

Kate Spade brands and Capri's Michael Kors' brands, which has

resulted in better prices, discounts and promotions for

consumers and wages and workplace benefits for employees.

The deal would also give Tapestry a dominant share of the

"accessible luxury" handbag market, a term coined by Tapestry to

describe quality leather and craftsmanship handbags at an

affordable price, the FTC said in its April lawsuit.

Tapestry, in response, argues that the FTC's analysis

misunderstands the handbag marketplace and the way consumers

shop, and that "accessible luxury" is a notional concept. The

U.S. handbag market, they say, is highly fragmented and

competitive with low barriers to entry and fickle consumer

tastes.

The FTC has sued to block several mergers over the past

year, making for a busy schedule.

The antitrust regulator is currently fighting to block

supermarket chain Kroger's ( KR ) acquisition of Albertsons ( ACI )

in a federal court in Portland, Oregon and has also sued

to block the $4 billion acquisition of Mattress Firm by mattress

manufacturer Tempur Sealy International ( TPX ).

Monday's trial, overseen by District Court Judge Jennifer

Rochon for the Southern District of New York, is expected to

last for a week and a half.

The brands are likely to call Jeff Gennette, the former CEO

of Macy's, to testify about the range of handbag choices

available to shoppers, while the FTC is expected to offer

evidence about the physical similarities between each company's

bags and how Americans respond to changes in handbag prices.

The trial follows the merger's approval by antitrust

regulators in Japan and the European Union earlier this year.