DNA Dilemma: What Happens to Your Data if 23andMe Goes Bankrupt?

A potential bankruptcy and possible sale of 23andMe, one of the world's leading biotech companies, has raised concerns about the fate of millions of customers' genetic data. Founded almost two decades ago, the company offers a user-friendly genetic testing service wherein users send in a saliva sample for thorough DNA analysis.

The privacy policy of the California-based company indicates that in the event of an acquisition, bankruptcy, or similar transactions, the personal information of users may be accessed, sold, or transferred. This possibility has ignited queries about privacy protection measures for the highly sensitive genetic data of users and sparked discussions about similar practices in other companies collecting DNA.

Since its 2006 launch, 23andMe has notably shaped the genetic testing market globally, offering insights into health, ancestry, and even food preferences. Despite the initial cost of US$999, the company has enjoyed immense popularity, further propelled by the sharp price reduction of testing kits to US$79 presently. As of 2024, a reported 14 million people have utilised the 23andMe DNA test.

However, the company experienced a swift decline after its 2021 public listing, facing a value depreciation of over 97%, a major data breach, and a class action lawsuit settlement. Recent reports also point to changes in the management structure with the resignation of seven independent directors and plans to privatize the company. Amidst these tumultuous events, the company's financial health is in question, raising concerns about the future security of the genetic data held by the company.

23andMe reiterated its commitment to user privacy in a statement, outlining that in the event of any change in ownership, the company's existing data privacy agreements with customers would remain intact until users approve any new terms.

- CyberBeat