Cigarette giant Altria sued by FTC over $12.8 billion Juul investment - Business Insider

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'From competitors to collaborators': The cigarette giant that owns Marlboro is facing an FTC lawsuit over its $12.8 billion investment in Juul

Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification.The FTC filed a lawsuit against cigarette giant Altria over its 35% stake in Juul, alleging that the companies made agreements that violate federal antitrust laws.

Juul and Altria, which owns Marlboro and Virginia Slims, allegedly agreed not to compete with each other after the deal, the FTC lawsuit claims. Altria said in a statement that its stake in Juul "does not harm competition" between the two companies.Altria is facing a new lawsuit from the Federal Trade Commission, which alleges that the cigarette giant violated antitrust laws when it bought a 35% stake in its competitor, e-cigarette startup Juul.

Altria, which owns Marlboro and Virginia Slims, made a $12.8 billion investment in Juul in 2018. That stake is now worth roughly $4.2 billion thanks to regulation and lawsuits, according toAfter Altria's investment, Altria gained the power to appoint an observer to Juul's board of directors, and would have been able to appoint three members to Juul's board after converting its shares to voting securities.

"Altria and JUUL turned from competitors to collaborators by eliminating competition and sharing in JUUL's profits," FTC Director of the Bureau of Competition Ian Conner said in a

 

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