FTC Alleges JUUL Pressured Altria to Exit E-Cigarette Market

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A JUUL spokesperson, Austin Finan, told the Bloomberg that the company disagrees with the FTC’s complaint and its “factual and legal allegations.” Murray Garnick, Altria’s executive Vice President and general counsel, also responded to the report by stating that his company doesn’t believe its investment in JUUL harms competition and the “FTC misunderstood the facts.” He also indicated that Altria has a strong defense and will “vigorously defend our investment.”

The FTC says that companies cannot show that any investment led to any efficiencies that would outweigh a lack of competition that the deal resulted in. The fact that the re-negotiated agreement between the two companies resulted in Altria no longer offering JUUL its help with marketing services diminishes the overall benefits of the investment between the two companies.

You can read the full report from Bloomberg here.