PMI's Swedish Match Hit With Consumers Lawsuit Over Monopoly Claims

Philip Morris International(PMI) subsidiary Swedish Match North America is facing a lawsuit for allegedly monopolizing the nicotine pouch market, according to a report from Reuters on November 20th. 

The proposed class action lawsuit was filed on Monday (the 19th) in federal court in Richmond, Virginia, alleging that Swedish Match has violated federal and state antitrust laws in the market for "modern oral nicotine pouches". 

The plaintiff, a resident of Florida, accuses Swedish Match of illegally obtaining a monopoly through a series of business practices, including driving competitors like Dryft out of the market. 

According to the lawsuit, Swedish Match is currently estimated to hold an 80% share of the nicotine pouch market. The company sells these products in different flavors and strengths, with each being priced at around $6.

In a statement, PMI stated that "we believe the plaintiff's claims are without merit, and we intend to vigorously defend against them".

The plaintiff's attorney did not immediately respond to a request for comment.

PMI acquired Swedish Match for $16 billion in 2022. PMI has previously stated its intention to transition away from the cigarette business. 

The focus of the class-action lawsuit is on the purchase agreement between PMI and Swedish Match, with the plaintiffs claiming that the agreement is anti-competitive. The plaintiffs are asking the court to compel PMI to divest from Swedish Match.

The lawsuit also accuses Swedish Match of filing baseless lawsuits against its competitor, Dryft.

In 2022, Dryft filed a lawsuit against Swedish Match in a federal court in California, accusing the company of violating antitrust laws. The lawsuit seems to have been resolved, as Dryft withdrew the case last year.

The lawyer in the case also did not immediately respond to requests for comment.

This lawsuit seeks to represent Zyn consumers in a class action and to request damages exceeding $5 million.