The UK’s Competition and Markets Authority (CMA) is looking into whether Farfetch’s plan to take a stake in Richemont ecommerce business YNAP might reduce competition in this market.
The plans, set out this summer by luxury brand house Richemont and Farfetch, would see the Yoox Net-A-Porter Group become 47.5% owned by Farfetch, while a further 3.2% stake would be taken by Dubai Mall developer Mohamed Alabbar via his Symphony Global operation.
Richemont chairman Johann Rupert said at the time that the deal would be a step towards his ambition of building an “independent neutral online platform for the luxury industry” that would attract both high-end brands and their customers. It would use Farfetch’s technology to help Richemont take its brands towards a new way of selling, and it would also take a stake in Farfetch.
But now the CMA is now asking for comments on whether the plans amount to an effective merger between the two, and, “if so, whether the creation of that situation may lead to a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
It has set a deadline of February 14 2023 for any comments to be made.
Farfetch is ranked Leading in RXUK Top500 research, while YNAP business Net-A-Porter is Top250, Yoox is Top350
