The parent companies of brands such as Coach, Kate Spade, Versace and Michael Kors decided not to proceed with a court battle.

Capri Holdings Ltd and Tapestry Inc. scrapped their $8.5 billion plan to merge after a court order froze the proposed combination of the US fashion companies due to antitrust regulators’ objections.

Tapestry Inc.’ stock jumped 6.8% early Thursday, while Capri Holdings Inc.’s stock fell about 4%, after Tapestry said it’s terminating its $8.5 billion merger agreement with its smaller rival.

A federal judge ruled Wednesday that a Federal Trade Commission lawsuit accusing Facebook owner Meta of holding an illegal monopoly over social media can proceed to trial, handing the agency a victory after previous setbacks in making its case in court.

In a 92-page order on Wednesday, US District Judge James Boasberg in Washington said he was narrowing one of the FTC’s claims. He accepted Meta’s arguments that some of its restrictions on its Facebook platform had legitimate business justifications.