Citation

Levy, D., Douglas, C.E., Sanchez-Romero, L.M., Cummings, K.M., Sweanor, D. (2020). An analysis of the FCTC’s attempt to stop the Altria-Juul Labs deal. Tobacco Regulatory Science, 6(4), 302-305.

Abstract

On 20 December 2018, Altria, the largest US cigarette company, announced an offer for a 35% share of the large and rapidly growing vaping product company, Juul Labs. On 2 April, 2020, the Federal Trade Commission issued a complaint that the deal was anticompetitive and should be voided. This paper analyzes the deal. We find that the deal gives Altria market power in the e-cigarette market through its support of Juul in retail stores and through the agreement not to otherwise compete in the e-cigarette market. The deal also has implications for its marketing of heated tobacco product IQOS and generally may provide Altria greater control of the broader nicotine delivery product market.