The signed law would bar people and businesses from monopolizing markets as buyers or sellers, while exempting qualifying small businesses and certain government-granted and supervised activities.
The signed law would ban people and businesses from monopolizing markets as buyers or sellers. Qualifying small businesses and certain government-granted and supervised activities would be exempt.
Only the attorney general or a district attorney could sue under this ban, and they must prove substantial market power at trial. Private unfair competition suits could not rest on alleged violations.
Courts would follow California Supreme Court guidance when deciding these monopoly cases. They would also read state competition laws broadly to promote free and fair competition.
The signed law would bar people and businesses from monopolizing, trying to monopolize, maintaining a monopoly, or teaming up to monopolize markets as buyers or sellers. The small business exemption covers independently owned and operated businesses with a main office in California and officers who live there. Counting related businesses, an exempt business must have 100 or fewer employees and average yearly gross receipts of $10 million or less. The ban would not cover conduct within certain government-granted and supervised franchises, contracts, licenses, or permits. It also would not cover certain conduct required or allowed by law and granted and supervised by a government agency. The $10 million receipts limit uses the three years before a complaint is filed.
Only California’s attorney general or a district attorney could bring a case under this new ban. These filing and proof rules apply to cases under the new ban. The unfair competition limit concerns alleged violations of that ban. Prosecutors must allege that the accused has substantial power in a market and prove it if the case reaches trial. A private unfair competition lawsuit could not use an alleged violation of this ban as its legal basis. These cases must be filed as complex cases, which carry extra court fees.
Courts would use California Supreme Court guidance for cases under the new ban and read California competition laws broadly. The court guidance applies to cases under the new ban. The broader reading applies to California competition laws generally. For certain claims, that guidance weighs harm to competition against possible benefits.
No hearings or votes scheduled.