Newsom Signs California's COMPETE Act, Redefining Monopolization
California's governor signed AB 1776 on September 30, 2026, and the law firm's alert says the COMPETE Act changes how monopolization is defined for businesses operating in the state.
On September 30, 2026, California Governor Gavin Newsom signed Assembly Bill 1776 — the Competition and Opportunity in Markets for a Prosperous, Equitable, and Transparent Economy Act, commonly called the COMPETE Act — into law, according to a Morrison & Foerster alert published October 5, 2026. The firm's headline states that the statute redefines monopolization, which would make it a live compliance consideration for any company selling goods or services into California.
Why sophisticated counsel should care: the alert as excerpted does not set out the Act's substantive standards, so the practical significance is not yet verifiable from this material alone. Counsel will want the statutory text and any accompanying or uncodified section before advising clients, because the definition of monopolization, any market-definition or dominance thresholds, and any safe harbours or concentration presumptions would drive exposure assessments, merger reviews, and pricing and distribution practices in the state.
Concrete next steps to watch: the full text and legislative analysis of AB 1776; any Attorney General guidance, enforcement statements, or pre-filing outreach on implementation; and the first private or public enforcement actions testing the new standard. Until those appear, the scope and timing of the change should be treated as unconfirmed beyond the signing date and the firm's characterization.