The US Federal Trade Commission (FTC) announced on 1 April that it had filed a complaint aimed at forcing Altria Group to sell its investment in Juul, reported Reuters.

The announcement came after, in December 2018, Altria purchased a 35 per cent stake in Juul for USD 12.8 billion. The value of this investment has subsequently dropped down to USD 4.2 billion, after Juul faced litigation and scrutiny over its contribution to the sudden rise in teenagers vaping.
According to the report, the FTC complaint alleges that, when Juul became the market-leading e-cigarette producer in 2018, Altria’s response was to agree to, “Not to compete in return for a substantial ownership interest in Juul.” Ian Connor, director of the FTC’s Bureau of Competition, was quoted as saying, “Altria and Juul turned from competitors to collaborators by eliminating competition and sharing in Juul’s profits.”
Prior to Altria’s Juul investment, MarkTen, Altria’s own brand of e-cigarette, was the second most popular e-cigarette of choice. Altria announced that it would no longer be producing the MarkTen a few weeks before formally announcing its investment in Juul.
“We believe that our investment in JUUL does not harm competition and that the FTC misunderstood the facts,” said Murray Garnick, Altria’s Executive Vice President and General Counsel, in a company press release. “We are disappointed with the FTC’s decision, believe we have a strong defense and will vigorously defend our investment.”