California Lawmaker Backs Sweeping Antitrust Overhaul

Assembly Majority Leader Cecilia Aguiar-Curry announced Tuesday that she is advancing legislation modeled closely on recommendations from the California Law Revision Commission. According to Bloomberg, the commission last month approved a draft proposal that would broaden the scope of the Cartwright Act, the state’s primary antitrust statute, to address allegedly anti-competitive conduct by individual companies, not just coordinated behavior among multiple firms.

Aguiar-Curry said her measure would be “very similar” to the commission’s draft. The proposal marks a substantial shift from the current framework of the Cartwright Act, which historically has focused on combinations of two or more parties engaging in anti-competitive practices. According to Bloomberg, the commission’s years-long study concluded that the law, first enacted in the early 20th century, no longer reflects the realities of the modern economy.

The new legislation, known as the Compete Act, seeks to redefine what constitutes a trust under California law. The bill’s text states that a trust would include a combination of capital, skill or acts by one person or more. Under existing law, such a combination must involve two or more people. Supporters argue that the revised definition would give state regulators broader authority to pursue cases involving dominant firms acting alone.

Speaking at a press conference, Aguiar-Curry said, “Markets have changed. Industries have consolidated. When competition dries up, our families pay more; our small businesses struggle to compete. Our workers have fewer options and innovation slows down.” She added that the bill is intended to modernize the state’s approach to competition policy.

Backers of the measure say the overhaul could also strengthen the position of workers and smaller enterprises. They contend that industry consolidation—citing sectors such as grocery retail—has dampened competition, weakened bargaining power for employees and contributed to stagnant wages. According to Bloomberg, advocates believe the expanded enforcement authority could create conditions that make it easier for workers to organize and for small businesses to compete against large corporations.

Union leaders joined Aguiar-Curry in support of the proposal. “Workers deserve to see their paychecks grow,” said Mark Ramos, president of United Food and Commercial Workers Western States Council and UFCW Local 1428. “They deserve to prosper, just as their employers have prospered,” he added during the event.

Lawmakers have pointed to recent high-profile corporate activity as examples of why the law needs updating. A proposed $83 billion deal in which Netflix sought to acquire Warner Bros. Discovery drew scrutiny from California officials, who questioned company representatives earlier this month. Congressional Republicans have also warned that such consolidation in the streaming and entertainment market could raise significant competition concerns.

Small business owners at Tuesday’s press conference described challenges posed by large online retail platforms. Some said major e-commerce companies use automated tools to gather product and pricing data from independent retailers’ websites and then replicate those listings to sell competing products on their own platforms. Supporters of the Compete Act argue that broader antitrust authority would help address such practices.

“The Compete Act is about providing competition and opportunity in markets, and it’s about creating a prosperous, equitable and transparent economy,” Aguiar-Curry said. “It’s about choices for consumers, power for workers, growth for small business, and it’s about markets built on merit, not power.”

Assembly Bill 1776 would build on the foundation of the 1907 Cartwright Act, updating it to reflect contemporary market dynamics.

Source: Bloomberg