It's the classic win-win for cigarette corporations. If they kill ecigs then they win, but if they get a big piece of the ecig market they also win.
If ecigs reduce cigarette sales significantly then BT will make sure their ecig products are the top sellers. However the most likely scenario in a regulated market area like this is that the big players remove the small players by rigging the market (fixing the regulations) in order to exclude small players, by raising costs. By this method, BT then sell both ends of the product line, and can decide which gets the best action. They can easily strangle ecig sales very effectively and make sure the bulk of sales stays with cigarettes.
The thing is, all the big players benefit by giving the market to the cigarette trade and excluding all the small businesses and innovators. There is no gain for anyone by allowing small business and new technology to kill the gravy train.
- Tax revenues must be protected. Federal and regional governments need to protect both their income channels and their cost savings. Smoking is a huge revenue generator and cost saver for government - it is one of their best properties. They get tobacco taxes, and taxes at every stage of the sales and distribution chain, immense MSA payments for the States, and huge cost savings at the other end when smokers die young (especially important in socialised countries).
- Pharmaceutical industry revenue must be protected. Pharma is so closely integrated with government that it can be regarded as part of it, for all practical purposes - no policy decisions will ever hurt pharma. Pharma's income from smoking is enormous (drugs for acute disease, the big boost to general drug sales, and - a much smaller channel - smoking cessation drugs).
- US States are kept afloat by smoking. The Attorneys General are fighting desperately to protect cigarette sales. The MSA funds are a crucial income channel.
- The Public Health industry is funded by smoking to a significant extent. No smoking = no job. The people at the top get million-dollar salaries and they are very well aware their monster incomes depend on smoking and the drug sales it generates.
All the biggest players depend on smoking. It is the world's biggest gravy train. You may think your government is honest and looks out for you, but the reality is that the system is based on corruption since it depends on you buying cigarettes and getting sick and dying early.