Although Philip Morris doesn't want tobacco regulated as a drug or as medicine, because that would lead to a ban on cigarettes, the company is serious. Neither does Philip Morris want the government to prohibit cigarettes. It looks like a shrewd marketing move. Sure, the tobacco industry is denounced regularly by politicians. But looked at another way, the industry has become a sort of public utility.
Tobacco companies collect cigarette taxes for governments worldwide.
Now, the industry has become a silent partner in state medical programs. Tobacco companies seem to face the same fate as asbestos companies, which were pushed into bankruptcy years ago by damage payments. Yet Geoffrey Bible, Philip Morris' chief executive officer, displayed no fears last month in an address to institutional investors in Washington. Executives of competitor R.J. Reynolds see Philip Morris' calls for regulation as a ploy to lock in the leadership position of the company and its Marlboro brands. Regulation typically raises barriers to entry and restricts competition within an industry.