California’s COMPETE Act Continues Steady Progress Through State Senate

California Assembly Bill 1776, the Competition and Opportunity in Markets for a Prosperous, Equitable and Transparent Economy (“COMPETE”) Act, is rapidly advancing through the California state legislature and is now positioned for a full Senate floor vote. If enacted, the COMPETE Act would significantly expand California’s antitrust statute, the Cartwright Act. 

The stated purpose is to align California with federal law to cover monopolization claims based on single-firm conduct similar to claims covered by Section 2 of the Sherman Act. Recent changes to the COMPETE Act aimed at securing passage in the current legislative session would both limit its enforcement but potentially also create greater uncertainty as to what conduct would be covered for companies participating in California’s trillion-dollar economy.