Altria has asked the U.S. Federal Trade Commission (FTC) to drop its 2020 challenge of the 2018 acquisition of a 35% stake in Juul, Reuters reported. On March 3, the tobacco giant announced that it would exchange its shares for Juul's heated tobacco intellectual property patents.
The FTC said that Altria's $12.8 billion investment in Juul violated antitrust law because the company gained a market position through acquisitions rather than continuing to compete with Juul in the closed vaping market.
In February 2022, an administrative judge dismissed the FTC's allegations, finding that the evidence failed to substantiate the alleged violations. In the next step, all committees decide whether to dismiss the FTC's case.
However, Altria recently withdrew from its investment in Juul and previously terminated a non-compete agreement with Juul, which the Federal Trade Commission had opposed.
"There is nothing left of the transaction to be challenged." Altria Group and Juul wrote in a filing with the FTC.
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