Senate Tightens Grip on Cigarette Makers

Cigarette makers -- never exactly the most sympathetic of U.S. corporate interests -- could be in for a new round of regulatory hurdles.

The Senate voted Thursday to grant the Food and Drug Administration new powers to limit nicotine in cigarettes, drastically curtail ads and ban candied tobacco products targeting children and teens.

While the legislation will transfer a huge chunk of control from cigarette makers to the FDA, Altria Group(MO Quote), maker of Marlboro, Parliament and Virginia Slims, said it supports the legislation. "For more than eight years, Altria Group has supported tough but reasonable federal regulation of tobacco products by the Food and Drug Administration and we are glad to see the progress Congress has made toward that goal," the company said in a statement.

Its competitors, like Reynolds Tobacco(RAI Quote) and Lorillard Tobacco(LO Quote), however, are against the restrictions.

The bill would place fees on tobacco makers, which will cut into profits of smaller sellers moreso than giants like Philip Morris. Stricter advertising rules would also put a damper on marketing efforts that could prevent these lesser-known companies from gaining market share.

Thus, the support of the behemoths.