“Did the FDA Just Hand the E-Cigarette Market to Big Tobacco?”

To be clear… The FDA regulations in the states (and the TPD in Europe) serve to do one thing: remove the small boutique vaping companies from the market and leave it open to big business (be it tobacco or pharma).

**EVERY** product you can see on this website would be legislated out of the market, you need to take action before it’s too late.

In the US? Read CASAA’s call to action, if you’re in Europe go to EFVI: the European Free Vaping Initiative

Altria Group, Reynolds American, and Lorillard combine for a 91.5% share of the U.S. cigarette market. This concentration of market power gives these companies pricing power that enables them to keep growing their profits even as the cigarette market declines. E-cigarettes are the only product that could threaten the cigarette oligopoly, but proposed Food & Drug Administration, or FDA, rules may have just created an e-cigarette oligopoly dominated by Altria, Reynolds, and Lorillard. This is terrific news for the big three U.S. tobacco companies and their shareholders.

FDA creates barriers to innovation

Although they are usually meant to promote the public interest, government regulations almost always favor big business. Large enterprises can more easily comply with burdensome regulations than their smaller counterparts can, which gives the bigger businesses a competitive edge. In fact, Altria, Reynolds, and Lorillard have dominated the cigarette market for so long because marketing restrictions make it difficult to introduce new brands, so it is nearly impossible for upstart brands to challenge the existing hegemony.

The story is no different in the e-cigarette market. The FDA’s proposed rules will limit innovation and increase the cost structures of companies in the market. The rules stipulate that the FDA will allow all e-cigarettes on the market that are “substantially equivalent” to devices that existed prior to February 15, 2007 to remain on the market. Companies must submit all others to the FDA for approval.The Motley Fool

Read the full article in The Motley Fool

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