California Bill Targeting Single-Firm Monopolies Awaits Signature
A bill passed by the California Legislature would for the first time extend the state's main antitrust law to cover monopolizing conduct by a single firm, awaiting the governor's signature.
The California Legislature has passed a bill that would significantly expand the state's primary antitrust law, the Cartwright Act, to cover single-firm monopolizing and monopsonizing conduct. The bill, AB 1776, passed both chambers with veto-proof majorities and now awaits Governor Gavin Newsom's signature. If signed by September 30, 2026, it will become effective on January 1, 2027.
This marks a major shift in California's antitrust enforcement landscape, which has historically focused on concerted action between multiple firms. The new provision would empower the state attorney general and district attorneys to bring enforcement actions against dominant companies for their unilateral business practices. To secure passage, the bill was narrowed from its original form, most notably by removing a private right of action and limiting its use in unfair-competition lawsuits.
Despite these changes, the law creates a new enforcement risk for companies with a significant market presence in California. Businesses should monitor whether the governor signs the bill and, if so, prepare to evaluate their pricing, distribution, and other competitive strategies under this expanded framework.