JAKARTA. The Federal Trade Commission (FTC) has filed a complaint that may force Altria Group, producer of Marlboro cigarettes, to sell its stake in JUUL, an electric cigarette company.
The complaint is related to Altria's decision to purchase 35% of JULL shares for US$ 12.8 billion at the end of 2018. However, at the end of 2019, Altria's investment in JUUL was reduced to US$ 4.2 billion, due to the many cases of death due to vape or electric cigarettes.
"Altria and JUUL have gone from being competitors to partners, by eliminating competition and sharing JUUL's profits," Ian Conner, Director of the Business Competition Bureau, said as reported by Reuters today.
Altria and JUUL did not respond to FTC's complaint. However, the FTC claimed to have submitted this complaint to the administrative law judge. (KR)