Net-A-Porter and Yoox merger inquiry launched by competition watchdog

The UK's competition regulator has launched an inquiry into the merger of Net-a-Porter and Italian competitor Yoox after it raised a question mark over the combined power of the two fashion e-commerce giants.

The Competition and Markets Authority (CMA) said that the £936m (€1.3bn) merger deal could lead to the "substantial lessening of competition" in the markets that it operates.

The CMA said it will make a decision to pursue the investigation further on 7 September, following comments from "any interested parties".

Net-a-Porter reportedly snubbed Amazon by partnering with the Italian e-commerce firm which will see the fashion etailer renamed Yoox Net-a-Porter group.

Last month Net-a-Porter announced its profits had hit £11m, while revenue rose 22.8 per cent to £654m in the year to end of March.