The US Federal Trade Commission said Thursday it has dropped a lawsuit against PepsiCo (PEP) over allegations of discrimination in the pricing of non-alcoholic beverages.

The commission under former President Joe Biden accused the beverage and snacks company of violating sections of the Robinson Patman and the FTC acts, saying its pricing strategy favored retail giant Walmart (WMT), Reuters reported.

"This commission cannot justify spending taxpayer dollars -- potentially millions of them if we were to proceed to trial -- pursuing a weak complaint filed by an outgoing administration for nakedly political purposes," the FTC said Thursday.

PepsiCo and Walmart did not immediately reply to MT Newswires' requests for comment.