California Senate Committee Advances Bill Expanding Antitrust Laws

The California State Senate Appropriations Committee advanced Bill AB 1776 on Thursday, a measure that would expand the state's antitrust enforcement capabilities. The bill proposes extending the Cartwright Act to cover anticompetitive conduct by individual companies, removing the current requirement that two or more entities be involved in the conduct.

Senator Sabrina Cervantes, Chair of the Senate Appropriations Committee, amended the measure to limit legal actions to public prosecutions. This amendment removed a provision that would have permitted private citizens to file lawsuits under the new rules. The change is intended to simplify the process for the state attorney general to pursue monopolization cases against large technology firms, including Apple Inc., Alphabet Inc., and Nvidia Corp.

Support for the bill comes from labor unions and consumer advocates who argue the expansion will protect workers and lower prices. However, the California Chamber of Commerce and the California Department of Finance oppose the measure, citing concerns over business burdens and the high costs associated with conducting antitrust investigations. The bill now moves toward a full chamber vote and requires the signature of Governor Gavin Newsom to become law.