Statement Regarding Illumina’s Decision to Divest Grail (Federal Trade Commission, December 18, 2023)
Summary
In a December 18, 2023 statement, FTC Bureau of Competition Director Henry Liu calls Illumina's decision to unwind its acquisition of Grail "a major win for the FTC" and says the Fifth Circuit's unanimous ruling "provides a clear roadmap for future cases" on vertical deals. The FTC challenged the acquisition in March 2021, alleging it would diminish innovation in the market for multi-cancer early detection tests while raising prices; in April 2023 the Commission reversed the Administrative Law Judge's dismissal and ordered divestiture. On December 15, 2023 the Fifth Circuit found substantial evidence that the deal was anticompetitive but vacated the order and remanded for further proceedings, because of the standard the Commission applied to one aspect of Illumina's rebuttal evidence. Illumina announced on December 17, 2023 that it would divest Grail.
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Full text
Statement Regarding Illumina’s Decision to Divest Grail Tags: Illumina, Inc. announced it would divest Grail, Inc. following a U.S. Court of Appeals for the Fifth Circuit decision that supported the Federal Trade Commission’s determination that the acquisition threatened competition in the market for cancer detection tests. Federal Trade Commission Bureau of Competition Director Henry Liu issued the following statement: “This is a major win for the FTC as it works to protect competition in health care. Illumina’s decision to unwind its acquisition of Grail ensures the market for cancer detection tests remains competitive and delivers a choice of high-quality tests for patients and physicians, ultimately saving lives. The Fifth Circuit’s unanimous ruling in this case recognizes how vertical deals can threaten competition and provides a clear roadmap for future cases. The ruling is also a victory for patients who need affordable, high-quality quality cancer detection tests. I applaud FTC staff for their dedication to this case and effort to ensure this critical health care market remains competitive.” The FTC challenged Illumina’s acquisition of Grail in March 2021 alleging the deal would diminish innovation in the U.S. market for multi-cancer early detection (MCED) tests while increasing prices and decreasing choice and quality of tests. In April 2023, the Commission issued an opinion and order reversing the Administrative Law Judge’s dismissal of the proceeding and requiring Illumina to divest Grail. In June 2023, Illumina petitioned the Fifth Circuit to review the Commission’s order and opinion, and the Fifth Circuit heard arguments in the case in September 2023. On December 15, 2023, the Fifth Circuit issued an opinion in the case finding that there was substantial evidence supporting the Commission’s ruling that the deal was anticompetitive. The Fifth Circuit vacated the Commission’s order and remanded it for further proceedings based on the standard the Commission applied when reviewing one aspect of Illumina’s rebuttal evidence. On December 17, 2023, Illumina then announced it would divest Grail. The Federal Trade Commission works to promote competition and to protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about how competition benefits consumers , file an antitrust complaint , or comment on a proposed merger . For the latest news and resources, follow the FTC on social media , subscribe to press releases and read our blog . Press Release Reference FTC Challenges Illumina’s Proposed Acquisition of Cancer Detection Test Maker Grail FTC Orders Illumina to Divest Cancer Detection Test Maker GRAIL to Protect Competition in Life-Saving Technology Market Contact Information Media Contact Victoria Caslow Office of Public Affairs 415-848-5121
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