Altria asks U.S. FTC to drop challenge of Juul deal after exiting stake
By Diane Bartz
WASHINGTON, March 7 (Reuters) - Marlboro maker Altria Group on Tuesday asked the Federal Trade Commission to drop its 2020 challenge of Altria's acquisition of 35% of e-cigarette maker Juul Labs Inc because it exited the stake last week.
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.
An FTC administrative law judge ruled for the companies in February 2022. The next step would have been for the full commission to decide whether to accept that decision and dismiss the FTC case.
However, Altria last week exited its investment and previously terminated a non-compete agreement with Juul that the FTC opposed.
"There is nothing left of the transaction to be challenged. Altria and JLI respectfully ask the Commission to dismiss this matter as moot," the companies said in a filing to the FTC.
Separately from the FTC action, Juul has fought with the Food and Drug Administration over whether it could sell e-cigarettes in the United States. (Reporting by Diane Bartz; Editing by Cynthia Osterman)
