Statute · United States Code

50 U.S.C. § 4566 — Prohibition on purchase of United States defense contractors by entities controlled by foreign governments

50 U.S.C. § 4566

Type
Statute
Source
United States Code
Jurisdiction
Federal
Date
2025-01-06
Topic
antitrust

No entity controlled by a foreign government may merge with, acquire, or take over a company engaged in interstate commerce in the United States that— (1) is performing a Department of Defense contract, or a Department of Energy contract under a national security program, that cannot be performed satisfactorily unless that company is given access to information in a proscribed category of information; or (2) during the previous fiscal year, was awarded— (A) Department of Defense prime contracts in an aggregate amount in excess of $500,000,000; or (B) Department of Energy prime contracts under national security programs in an aggregate amount in excess of $500,000,000. The limitation in subsection (a) shall not apply if a merger, acquisition, or takeover is not suspended or prohibited pursuant to section 4565 of this title. In this section: (1) The term "entity controlled by a foreign government" includes— (A) any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and (B) any individual acting on behalf of a foreign government, as determined by the President. (2) The term "proscribed category of information" means a category of information that— (A) with respect to Department of Defense contracts— (i) includes special access information; (ii) is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interes…

Citator

50 U.S.C. § 4566 — Prohibition on purchase of United States defense contractors by entities controlled by foreign governments is in force in the current edition of the Code, and nothing recorded condemns it.

No entity controlled by a foreign government may merge with, acquire, or take over a company engaged in interstate commerce in the United States that— (1) is performing a Department of Defense contract, or a Department of Energy contract under a national security program, that cannot be performed satisfactorily unless that company is given access to information in a proscribed category of information; or (2) during the previous fiscal year, was awarded— (A) Department of Defense prime contracts in an aggregate amount in excess of $500,000,000; or (B) Department of Energy prime contracts under national security programs in an aggregate amount in excess of $500,000,000. The limitation in subsection (a) shall not apply if a merger, acquisition, or takeover is not suspended or prohibited pursuant to section 4565 of this title. In this section: (1) The term "entity controlled by a foreign government" includes— (A) any domestic or foreign organization or corporation that is effectively owned or controlled by a foreign government; and (B) any individual acting on behalf of a foreign government, as determined by the President. (2) The term "proscribed category of information" means a category of information that— (A) with respect to Department of Defense contracts— (i) includes special access information; (ii) is determined by the Secretary of Defense to include information the disclosure of which to an entity controlled by a foreign government is not in the national security interests of the United States; and (iii) is defined in regulations prescribed by the Secretary of Defense for the purposes of this section; and (B) with respect to Department of Energy contracts— (i) is determined by the Secretary of Energy to include information described in subparagraph (A)(ii); and (ii) is defined in regulations prescribed by the Secretary of Energy for the purposes of this section.