Published • loading... • Updated
Newsom signs anti-monopoly bill after bruising legislative battle
The law lets district attorneys and the attorney general sue individual companies for alleged anticompetitive conduct after a yearslong fight over enforcement powers.
- On Wednesday, California Gov. Gavin Newsom signed Assembly Bill 1776, known as the COMPETE Act, modernizing the 1907 Cartwright Act to allow state officials to sue single companies for anticompetitive conduct.
- Democratic Assembly Majority Leader Cecilia Aguiar-Curry introduced the bill to address market consolidation; the previous regulation only covered agreements between two or more businesses, leaving single-company monopolies largely unchecked.
- The California Chamber of Commerce fiercely opposed the legislation, arguing it would invite frivolous lawsuits. Lawmakers removed a "private right of action" provision that would have allowed individuals to sue companies, securing passage.
- Newsom stated the law targets "predatory practices that drive up costs" to level the playing field for small businesses. Only state attorneys general or district attorneys can bring cases, requiring proof of "substantial market power."
- The COMPETE Act takes effect Jan. 1, 2027. Lee Hepner of the American Economic Liberties Project expressed skepticism, suggesting the governor's cautious signing message signals reluctance to fully utilize these new enforcement tools.
Insights by Ground AI
12 Articles
12 Articles
Reduces bureaucracy to speed up the acquisition of commercial permits
Coverage Details
Total News Sources12
Leaning Left5Leaning Right1Center1Last UpdatedBias Distribution72% Left
Bias Distribution
- 72% of the sources lean Left
72% Left
L 72%
14%
14%
Factuality
To view factuality data please Upgrade to Premium
