Police have raided 30 tobacco shops in Melbourne as part of an investigation into arson attacks on businesses, including fires in Wodonga and Wangaratta.
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Police believe those fires are part of an underworld fight linked to illegal tobacco, with crime groups battling for control of the market.
A taskforce was established earlier this month to investigate the incidents, including 27 or 28 suspicious fires.
Police raided more than 30 shops across Melbourne on Wednesday and Thursday.
The October 18 and 19 search warrants led to the seizure of nearly 37,000 vapes with a street value of more than $1 million, 524,851 cigarettes, 30 kilograms of loose tobacco, two kilograms of marijuana and other items.
Six people were arrested.
One was charged with drug offences and the remainder released pending enquiries.
"At this time, Taskforce Lunar investigators believe the current situation is as a result of criminal syndicates in conflict due to competition for profit derived from the illicit tobacco market," a police spokeswoman said.
"The current conflict includes both the physical placement of illicit tobacco into stores, as well as demands for stores to sell the syndicate's illicit product and to pay a 'tax' per week to operate."
Investigators believe bikies and Middle Eastern crime groups are involved, with 13 arrests made.
"As we've seen this year, these organised crime syndicates have very little regard for the harm they are inflicting on the community as part of their battle for illicit tobacco profits," Detective Superintendent Jason Kelly said.
"We've seen a significant number of arson attacks, along with several firearms incidents, and it's only through sheer luck that no one has been killed.
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"The warrants this week as part of the Taskforce Lunar investigation into the operation of these crime syndicates are a strong demonstration of state and Commonwealth agencies coming together to target the issue of illicit tobacco in every way possible.
"We have been clear that this is no longer about simply the investigation of the individual incidents - this is about doing absolutely everything we can to deter, disrupt and dismantle these syndicates."
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