US trade watchdog sues over US$13 bil Altria-Juul vaping deal

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US trade watchdog sues over US$13 bil Altria-Juul vaping deal
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Companies turned ‘from competitors to collaborators,’ by eliminating competition. FMTNews Vaping

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

“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 announced the US$4.1 billion write-down on its Juul investment, which followed a similar move in October that whacked US$4.5 billion off the value on its books.

Vaping came under additional scrutiny last year because of a health scare over cases of severe and sometimes deadly lung ailments, although that was later linked to a substance used in cannabis products.

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