Altria Requests FTC to Drop Juul Acquisition Lawsuit
According to a report from Reuters, Altria is asking the US Federal Trade Commission to drop its charges against the company's purchase of 35% of Juul in 2018. On March 3rd, the tobacco giant announced that it had exchanged its shares for Juul's heated tobacco intellectual property patents.
The Federal Trade Commission believes that Altria's $12.8 billion investment in Juul violates antitrust laws, as the company gained market position through an acquisition rather than continuing competition with Juul in the closed e-cigarette market.
In February 2022, an administrative judge dismissed charges by the Federal Trade Commission, stating that the evidence did not support the alleged violation. The next step is for the entire Commission to decide whether to accept the ruling and dismiss the case brought by the FTC.
However, Altria recently pulled out its investment in Juul and terminated a non-compete agreement with Juul that had previously been opposed by the Federal Trade Commission.
The transaction no longer has any parts that require accusation, as it has become meaningless," wrote Altria Group and Juul in documents submitted to the Federal Trade Commission.
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Altria has requested the Federal Trade Commission to dismiss the lawsuit regarding its acquisition of Juul.
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