California Advances Bill Letting Private Parties Sue Over Single‑Firm Antitrust Conduct

Overview

• The COMPETE Act (AB 1776) cleared the California Senate Judiciary Committee on July 15 and now goes to the Senate Appropriations Committee for further review.
• The bill would change the Cartwright Act to let people and businesses bring state‑court claims against a single company for conduct that harms competition rather than requiring two or more firms to act together.
• Assemblymember Cecilia Aguiar‑Curry added an exemption for independently owned California businesses with no more than 100 employees and average gross receipts of $10 million over three years to address small‑business worries.
• Labor unions and the plaintiffs’ bar back the bill as a way to police consolidation that federal agencies and courts have not always stopped while business and tech groups warn it could invite predatory litigation and higher costs.
• Lawmakers are debating whether to keep a private right of action, raise the market‑power threshold for claims, and add clearer limits so judges decide cases on measurable harm; the outcome will shape how often Californians and companies can sue over alleged monopolistic conduct.