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ARTICLE · 19 OCTOBER 2026

California’s COMPETE Act Passes Into Law

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California's newly enacted COMPETE Act fundamentally reshapes antitrust enforcement in the state by extending the Cartwright Act to single-firm conduct and introducing the undefined threshold of "substantial market power."

United StatesAntitrust/Competition Law
Noah Brumfield
Noah Brumfield
Regina Loureiro
Regina Loureiro
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California Assembly Bill 1776, the Competition and Opportunity in Markets for a Prosperous, Equitable and Transparent Economy Act (the “COMPETE Act”), has been enacted and will take effect on January 1, 2027. The bill was signed into law by Governor Gavin Newsom on September 30, 2026. The COMPETE Act significantly expands California’s antitrust statute, the Cartwright Act. It also expands the California attorney general’s enforcement authority beyond the claims available under federal antitrust law, creating uncertainty for companies that conduct business in California.

The passage of the COMPETE Act signals continued expansion of antitrust scrutiny by state enforcers, including state attorneys general and district attorneys. In recent years, state enforcers have increasingly pursued cases independently of federal agencies such as the Federal Trade Commission (FTC) and the Department of Justice (DOJ). These state-led efforts have included a multistate jury verdict against Live Nation

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