Judge OKs sale of 23andMe to a nonprofit led by its founder

Judge Approves Sale of 23andMe's Data to Nonprofit for Medical Research
Photo: npr.org

Judge Approves Sale of 23andMe’s Data to Nonprofit for Medical Research

A bankruptcy judge has approved the sale of 23andMe, a genetics firm, to a nonprofit led by co-founder Anne Wojcicki. The sale includes 23andMe’s extensive DNA data, which had previously raised concerns after it was announced that the company might sell the data to a pharmaceutical firm. The company, known for providing ancestry and health risk analysis through DNA testing kits, had accumulated a large database of genetic information from millions of customers. Many states opposed the potential sale of this data to a pharmaceutical company, arguing that genetic information is a unique and highly personal type of property. However, with the approval of the sale to TTAM Research Institute, Wojcicki’s nonprofit organization, the deal ensures that customers’ data will continue to be protected under the same privacy policies. Customers will also maintain the ability to delete their data at will. The nonprofit intends to use the data for medical research rather than commercialization. Despite the ruling, some states remain opposed to the deal, and ongoing concerns about data security persist, especially following a major 2023 data breach. Legal experts hope this case will prompt stronger data privacy laws in the future.

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