The U.S. Federal Trade Commission (FTC) is investigating whether baby-formula makers, including Abbott Laboratories (ABT), Reckitt Benckiser (RBGLY), and Nestlé (NSRGY), have colluded on bids for state contracts. The regulator is looking into whether the companies have “engaged in collusion or coordination with any other market participant regarding the bidding” for state contracts. The Wall Street Journal reported on the FTC’s documents published in April. Other agencies have also launched probes in recent months, including the Justice Department. In January, the FTC approached Abbott and asked for information about bidding for the state infant-formula supply contracts. The outcome of the investigation is yet to be seen.
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