UK watchdog launches investigation into Richemont's sale of YNAP to Farfetch
The UK’s Competition and Markets Authority (CMA) launched a probe into Richemont’s sale of e-commerce businesses Yoox Net-a-Porter (YNAP) to Farfetch, and if they may pose unfair competition.
The CMA has invited comments on the transaction from any interested party, as it takes a deep dive into the merger situations, which is regulated by the Enterprise Act 2002.
With Farfetch in a controlling seat, Richemont’s portfolio of brands, which include Cartier and Alaïa, would potentially have access to the technology driving Farfetch sales, and could result in a substantial lessening of competition within any market or markets in the United Kingdom.
Last year Richemont sold 51 per cent of YNAP to Farfetch and Dubai-based businessman Mohamed Alabbar, who is from Dubai.
As part of the deal Richemont secured a stake of around 13 percent in Farfetch.