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ARTICLE · 30 OCTOBER 2026

A New Source Of Antitrust Exposure: California Adopts Monopolization Prohibition

WilmerHale
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California's new COMPETE Act extends the state's Cartwright Act to single-firm conduct, creating the first state-law monopolization statute in California. While significantly narrower than initially proposed, the law grants California's Attorney General and district attorneys new enforcement powers that may diverge from federal antitrust standards. What does this mean for companies with substantial market positions in California?

United StatesAntitrust/Competition Law
Hartmut Schneider
Hartmut Schneider
Leon Greenfield
Leon Greenfield
Perry A. Lange
Perry A. Lange
Nana Wilberforce
Nana Wilberforce
Kiannah Kossari
Kiannah Kossari
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WHAT YOU NEED TO KNOW:

  • California has enacted the COMPETE Act, which extends the state's antitrust statute, the Cartwright Act, to single-firm conduct.
  • The final law is narrower than the California Law Revision Commission's proposal: only the California Attorney General and district attorneys may bring claims, and the proposal's rejection of federal Section 2 limitations did not survive.
  • Companies with substantial market positions in California should evaluate unilateral conduct with the new statute in mind.

Governor Gavin Newsom signed the COMPETE Act into law on September 30, 2026.1 For the first time, California’s antitrust statute, the Cartwright Act, will reach single-firm conduct: the new law makes it unlawful to monopolize or monopsonize in any part of trade or commerce.2 The law takes effect in January 2027.

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