CAL.Regulation
California extends Cartwright Act to single-firm monopolization, with enforcement limited to AG and district attorneys
Governor Gavin Newsom signed AB 1776, known as the Compete Act, on September 30, 2026 (Chapter 826, Statutes of 2026). From January 1, 2027, the Cartwright Act prohibits any person from monopolizing or monopsonizing any part of trade or commerce. Only the attorney general or a district attorney may sue, and plaintiffs must prove substantial market power. Qualifying California small businesses are exempt.
Enrolled text (California Legislative Information) → · Office of Governor Gavin Newsom, Palo Alto Online (CalMatters)
Key points
- Chapter 826, Statutes of 2026, adds Business and Professions Code sections 16730 to 16732; with no urgency clause, it takes effect January 1, 2027.California Legislative Information
- Prohibits any person from monopolizing or monopsonizing any part of trade or commerce; courts must apply the In re Cipro Cases I & II framework.California Legislative Information
- Only the attorney general or a district attorney may bring an action; a private right of action was removed before passage.California Legislative InformationPalo Alto Online (CalMatters)
- Plaintiffs must allege and prove substantial market power through direct or indirect evidence, and actions are filed as complex cases.California Legislative Information
- Exempts California small businesses with 100 or fewer employees and average annual gross receipts of $10 million or less.California Legislative Information
- Newsom wrote that the bar must not be set too low and said he expects courts to penalize clear wrongdoing without needless uncertainty.Palo Alto Online (CalMatters)
Sources3 articles across 3 outlets
California Legislative Information
Office of Governor Gavin Newsom
Palo Alto Online (CalMatters)