US trade watchdog sues over USD 13 bn Altria-Juul vaping deal

The US trade watchdog said Wednesday it had sued Altria and Juul over a USD 12.8 billion e-cigarette deal which allegedly breached antitrust laws.

According to the Federal Trade Commission (FTC), the companies made a string of agreements that eliminated competition surrounding tobacco giant Altria's acquisition of a 35 percent stake in Juul, the once high-flying vaping brand.

"For several years, Altria and Juul were competitors in the market for closed-system e-cigarettes," the FTC said in a statement announcing it had filed an administrative complaint against the pair.

"By the end of 2018, Altria orchestrated its exit from the e-cigarette market and became Juul's largest investor," added Ian Conner, from the FTC's bureau of competition.

"Altria and Juul turned from competitors to collaborators by eliminating competition and sharing in Juul's profits."
"We believe that our investment in Juul does not harm competition and that the FTC misunderstood the facts,"