UNITED STATES
The Federal Trade Commission (FTC) has filed a lawsuit to reverse Altria Group’s US$12.8 billion investment in Juul Labs for a 35% stake in the company, citing violations of federal antitrust laws.
FTC said that in 2018 Altria acted as part of a secret agreement with supposed rival Juul Labs, and that Altria lied when it said it exited the e-cigarette market because it wanted to safeguard public health.
FTC went on to allege that Altria shut down its own e-cigarette brands, MarkTen and Green Smoke, before acquiring its stake in Juul as “executives made clear their position that Altria could not remain a competitor in the relevant market if there was to be a deal.”
Both Juul and Altria have denied FTC’s accusations.