NEW YORK (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.