California Passes COMPETE Act To Target Single-firm Conduct

On September 30, 2026 California Governor Gavin Newsom signed into law legislation amending California’s antitrust statute, the Cartwright Act, to target single-firm monopolization and monopsonization conduct. Beginning January 1, 2027, the Competition and Opportunity in Markets for a Prosperous, Equitable and Transparent Economy Act (the “COMPETE Act” or “AB 1776”) will provide public enforcers in California with the authority to challenge conduct that falls outside of the purview of its federal analog, Section 2 of the Sherman Act. Before the COMPETE Act, the Cartwright Act covered only anticompetitive “agreements” between multiple parties. The broad framing of this new law has the potential to expand California’s (already prominent) role as a forum for firms facing antitrust allegations of single-firm conduct.