Letter to Andrew Katsaros, Inspector General of the Federal Trade Commission - Garbarino Calls on FTC To Address National Security Threats Posed by Chinese Genomic Technology

Letter

Dear Inspector General Katsaros,

As you know, OMB Circular A-123 requires the Federal Trade Commission (FTC) to assess and mitigate emerging national security risks attributable to FTC actions. As America deals with multifaceted threats to national security, the FTC will inevitably engage in actions that require assessment and mitigation under the Circular, including mergers and acquisitions in sensitive areas such as semiconductors, the defense sector, and genomic innovation. We are writing to obtain your confirmation that the FTC is complying with the Circular's requirement that national security risks resulting from FTC actions be properly mitigated.

The leading responsible national security agencies have identified significant national security risks in the genomics sector. Last October, the National Counterintelligence and Security Center (NCSC) issued a warning about foreign threats in "technology sectors where the stakes are potentially greatest for U.S. economic and national security. These sectors produce technologies that may determine whether America remains the world's leading superpower or is eclipsed by strategic competitors in the next few years."1 The NCSC report singles out genomic technology as a primary area of national security risk.

OMB Circular A-123 provides a critical line of defense against the identified national security threat posed by foreign adversaries' efforts to overtake U.S. innovation in genomic technology, and specifically in multicancer early detection (MCED) testing. To ensure the Circular is being properly enforced, please provide the following information:

Please confirm that in all merger reviews or litigation involving MCED testing, the Commission takes account of relevant threat assessments by responsible national security agencies as it pertains to the ability of non-U.S. MCED companies to gain market share in the U.S. at the expense of American competitiveness and innovation, and;
Please confirm that in merger reviews and litigation involving MCED testing, the Commission is implementing all available mitigation options, including all permissible settlement options, in any case where the Commission's actions might (1) facilitate foreign adversaries' efforts to overtake U.S. leadership in MCED testing; or, (2) lead to avoidable antitrust delays that could allow non-U.S. MCED firms to capitalize on such delays and penetrate the U.S. MCED market.
Please provide the information described above within 60 days. Thank you for your timely consideration of this request and we look forward to your response.