Farfetch swoop on Net-A-Porter to be probed by the competition watchdog

Regulators are probing a tie up between two online retailers that would create a one-stop marketplace for luxury goods. 

The Competition and Markets Authority (CMA) is investigating Farfetch’s deal to buy a stake in Yoox Net-A-Porter, owned by Swiss luxury group Richemont.

Richemont, whose brands include Cartier and Montblanc, sold 51 per cent of Yoox to London rival Farfetch and businessman Mohamed Alabbar, who is from Dubai, in August. 

As part of the deal Richemont secured a stake of around 13 per cent in Farfetch. 

Richemont has been pushing since 2015 for a ‘neutral’ online marketplace for luxury brands. 

The deal paved the way for its creation. But it will need approval from the CMA, which is investigating whether it amounts to a merger