California's COMPETE Act expands Cartwright Act to single-firm monopolization

California's COMPETE Act amends the Cartwright Act to create state-law prohibitions on single-company monopolization, adding a route to challenge firms with substantial market power beyond what federal antitrust law reaches. Faegre Drinker advises that companies holding significant share in any market — expressly including labor markets — should not rely solely on federal case law when evaluating loyalty discounts, tying, self-preferencing and exclusive dealing arrangements, because California law now supplies its own framework for single-firm conduct.

The practical significance is layered exposure: conduct that clears scrutiny under federal monopolization standards may still invite scrutiny under the Cartwright Act as expanded, and labor-market power brings non-competition functions into scope in a meaningful way. For clients, the near-term step is a documented review of pricing and contracting practices in any market where they hold substantial share, and an inventory of labor-market positions; for antitrust counsel, the developments to watch are the enacted statutory text, any implementing guidance, early case law, and how the new prohibitions interact with California's merger review and Attorney General enforcement priorities. Treat this as risk mapping rather than a settled statement of liability, and confirm the operative language before acting.