FTC Drops Action Against Altria for Juul Purchase

Credit: Ascannio

The U.S. Federal Trade Commission dismissed a complaint against NJOY parent Altria Group and e-cigarette maker Juul Labs that was brought after Altria bought a 35 percent stake in Juul Labs.

The agency also said on Monday it would vacate an FTC administrative law judge’s decision in favor of the companies in February 2022. Since it has been vacated, it cannot be cited as precedent, the agency said in the statement announcing it was dropping the litigation.

The FTC said in 2020 that Altria’s $12.8 billion investment violated antitrust law because the company acquired the position rather than continuing to compete against Juul in the market for closed-system e-cigarettes, according to Reuters.

Altria had exited the stake earlier this year and had asked the FTC to drop the challenge. As of December, its share of Juul was valued at $250 million, down from $12.8 billion in 2018.

Altria said on Monday it was pleased by the FTC dropping its complaint.

Separate from the FTC action, Juul Labs has fought with the U.S. Food and Drug Administration over whether it could sell its Juul e-cigarettes in the United States.

Altria’s MarkTen was at one point the second most popular e-cigarette maker, according to the FTC.

In May, Altria said that it would pay $235 million to settle at least 6,000 lawsuit.