Baby-Formula Makers Face FTC Investigation for Collusion

The Federal Trade Commission is investigating whether baby-formula makers colluded on bids for lucrative state contracts.

The agency, in documents posted to its website, said it is looking into whether Abbott Laboratories and other formula manufacturers have “engaged in collusion or coordination with any other market participant regarding the bidding” for state contracts.

The FTC is also investigating whether company coordination affected sales more broadly, outside of the Women, Infants and Children formula-supply program, FTC Commissioner Alvaro Bedoya wrote.

Abbott, which sells Similac formula, said it is cooperating with the FTC’s investigation. In February, Abbott lawyers said...