Sacramento, CA (MPG) - Assembly Bill 1776 (AB 1776), the Competition and Opportunity in Markets for a Prosperous, Equitable and Transparent Economy (COMPETE) Act, passed the California State Senate Judiciary Committee late Tuesday evening with a 9-2 vote. AB 1776 seeks to close a key loophole in California’s antitrust laws that prevents enforcement actions against single companies engaged in illegal anticompetitive conduct. Over the past few decades, consolidation across a majority of US industries has allowed large corporations to gain greater influence over prices and workplace conditions, contributing to higher costs for Californians on essentials such as food, healthcare and housing, while reducing opportunities for worker mobility.

“This is a critical moment for our small businesses, consumers and workers. There is a growing bipartisan call for states to take the lead on strengthening market competition. And right now, California’s Cartwright Act simply doesn’t have the tools to address predatory corporate behavior—it falls short when it comes to illegal single-firm conduct. We’re behind 45 states and federal law in our ability to protect our constituents” said Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters), the bill’s author. “California families and small businesses are paying the price for decades of shrinking competition across industries. When competition disappears, there’s nothing to stop the remaining players from raising prices, suppressing wages and limiting economic opportunities. AB 1776 will provide an important tool to address this imbalance in our economy. We still have work to do, but the Senate Judiciary Committee’s vote is another victory for everyday Californians.”

AB 1776 would update California’s 119-year-old antitrust law to address anti-competitive conduct by dominant companies that harm consumers, workers, and small businesses. The bill preserves protections for legitimate business growth while targeting practices that create higher costs and limit economic opportunities. Under current law, if two or more companies commit illegal anticompetitive acts, they can be held responsible for harming consumers or killing competition. The COMPETE Act would ensure anti-competitive conduct by a single company also violates California law and reaffirm that California courts may consider, but are not bound by, federal antitrust precedent. By strengthening enforcement tools and clarifying state law, AB 1776 would align California with 45 other states that already recognize anti-competitive conduct by a single firm as illegal under state antitrust laws. The legislation is based on unanimous recommendations from the California Law Revision Commission following years of expert study and public input on the effects of growing market concentration across industries.

AB 1776 now advances to the Senate Appropriations Committee with continued support from Californians seeking stronger competition, lower costs, better wages, and greater opportunity for small businesses and entrepreneurs. The COMPETE Act is supported by a broad coalition of consumer advocates, labor organizations, small business leaders, and economic justice groups working to ensure California’s antitrust laws reflect today’s economy. Coalition member groups issued the following statements following the Senate Judiciary Committee vote:

“We thank all the senators of the Senate Judiciary Committee for supporting the COMPETE Act. AB 1776 passing is further evidence that California is done allowing monopolists, oligopolists, and their apologists to stifle competition and innovation and harm consumers. We urge all members to continue stand with consumers and small businesses and support AB 1776," said Robert Herrell, executive director, Consumer Federation of California.

"California needs to bring its antitrust laws into the 21st century in order to more effectively protect small businesses from modern anti-competitive practices. The COMPETE Act would do exactly that by giving small business owners, the workers they hire, and their local communities a fighting chance when it comes to pushing back against monopolies that hinder fair competition and innovation. We're glad to see policymakers are recognizing the importance of this legislation, and we hope AB 1776 continues to advance on its way to becoming law," said David Chase, chief policy and outreach officer, Small Business Majority.

“Corporate monopolies and their predatory practices are contributing to the worst affordability crisis in our history," said Lorena Gonzalez, president, California Federation of Labor Unions, representing 1,300 unions and 2.3 million union members. "AB 1776 will make it easier to rein in these multi-billion-dollar corporate monopolies and stop them from unilaterally raising our prices, lowering wages for workers, and making it harder for all workers to unionize."

“Today, AB 1776 cleared another big step towards holding greedy corporations accountable. When we stand together we can demand that workers across industries are protected from companies using century-old law to their advantage for profit gains. Teamsters California will not standby as Big Tech and greedy corporation’s lobbyists attempt to outspend and outnumber working people in the halls of the capitol. California is not a playground for corporate bullies,” said Peter Finn and Victor Mineros, co-chairs, Teamsters California.

"Years of consolidation and shrinking competition in the grocery industry have tilted the playing field against workers, allowing employers to hold down wages, weaken collective bargaining rights, and make it harder for workers to organize. AB 1776 is a critical step toward restoring balance. By strengthening protections for workers, promoting fair competition, and creating opportunities for small businesses to thrive, this legislation will help lower costs for consumers and drive innovation throughout California’s economy. UFCW is proud to support AB 1776," said Mark Ramos, president, UFCW Western States Council and UFCW Local 1428.

“Today's vote is a major victory for every Californian who is tired of watching monopolies and conglomerates rig markets at the expense of small businesses and ordinary people. States are being called on to lead and California lawmakers are standing with regular working people against the empty claims of the California Chamber of Commerce, which is being exposed as nothing more than a trade group for monopolists. At an inflection point for federal antitrust enforcement, the COMPETE Act charts the path to the next generation of shared prosperity in the state of California. We look forward to working with lawmakers to get this bill to the governor’s desk and to ensure that California remains a place where opportunities abound, innovation thrives, and success is earned on the merits, unrestrained by the grip of monopoly power,” said Lee Hepner, antitrust lawyer and senior legal counsel, American Economic Liberties Project.

“Today's vote reflects what Californians already know—that when a handful of corporations control entire markets, everyone else pays the price. The Senate Judiciary Committee took an important step toward ensuring that California's economy works for workers, small businesses, and families and not just for those at the top. We are grateful to the committee members who voted yes and look forward to carrying this momentum through the rest of the legislative process,” said Samantha Gordon, chief advocacy officer, TechEquity.

“And at every stop, lawmakers have looked at what the bill actually does and voted yes anyway, because they know that one of the first steps to address the affordability crisis is to stop the abuse by monopolies that makes it worse. Here's why the measure keeps passing—the COMPETE Act simply applies the same rules of fairness to everyone,” said Loyal Terry, legislative advocate, Economic Security California Action.