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An Analysis of the FTC's Attempt to Stop the Altria-Juul Labs Deal
David T Levy1, Clifford E Douglas2, Luz Maria Sanchez-Romero3
1Cancer Prevention and Control, Lombardi Comprehensive Cancer Center, Georgetown University, Washington, DC, 20007, USA.
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.
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