The U.S. Federal Trade Commission is investigating whether baby-formula makers Abbott Laboratories and Nestle colluded on bids for attractive state contracts. The antitrust agency is looking into whether the companies have “engaged in collusion or coordination with any other market participant regarding the bidding” for the Women, Infants and Children (WIC) formula-supply program.
In February, Abbott said it received a civil investigative demand from the FTC related to a probe of the companies participating in bids for WIC formula contracts. Nestle, which makes the Good Start line of infant formulas, has also responded to the FTC.
The FTC, Abbott, and Nestle did not immediately respond to Reuters requests for comment. The investigation is ongoing and the outcome is yet to be determined.