Cartwright Act: violations.

Plain English Breakdown

The official source does not provide details on enforcement mechanisms or costs, leaving these points as unknowns.

Cartwright Act: Violations

AB-1776 amends the Cartwright Act to prohibit monopolizing or monopsonizing in trade and commerce, clarifies definitions of 'restraint of trade', and requires courts to interpret antitrust laws liberally.

What This Bill Does

• Prohibits individuals or companies from taking actions that would lead to monopolization or monopsonization in any part of trade or commerce.
• Defines 'restraint of trade' as including actions, measures, or acts under the Cartwright Act's definition of a trust.
• Prevents anticompetitive effects in one market from being offset by benefits in another market.
• Allows certain conditions to be used as evidence that someone violated the law but does not require them for establishing liability.

Who It Names or Affects

• Businesses and companies operating in California
• Courts interpreting antitrust laws

Terms To Know

Monopolize

To have complete control over a market or business area.

Monopsonize

To be the only buyer in a market, giving you power to set prices low.

Limits and Unknowns

• Does not specify who will enforce these new rules.
• The bill does not explain how much it will cost to implement or enforce.
• It is unclear what specific actions would be considered illegal under the expanded definition of 'restraint of trade'.

Official Summary Text

AB 1776, as amended, Aguiar-Curry.
Cartwright Act: violations.
Existing law, commonly known as the Cartwright Act, identifies certain acts as unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement. Chapter 338 of the Statutes of 2025 provides that in a complaint for any violation of the Cartwright Act, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible. Chapter 338 of the Statutes of 2025 also provides that a complaint for any violation of the Cartwright Act is not required to allege facts tending to exclude the possibility of independent action.
This bill would prohibit one or more persons from acting, causing, taking, or directing measures, actions, or events that are to monopolize or monopsonize in any part of trade or commerce, as
specified, or in restraint of trade. For these purposes, the bill would define “restraint of trade” to include any actions, measures, or acts included or cognizable under a specified provision of the Cartwright Act that defines “trust,” whether directed, caused, or performed by one or more persons. The bill would prohibit anticompetitive effects in one market from being offset by purported benefits in a separate market and would prohibit the harm to a person or persons from the challenged conduct from being offset by purported benefits to another person or persons. The bill would authorize any of specified conditions to constitute evidence of liability under the Cartwright Act but would prohibit requiring a finding, including, but not limited to, of any of the specified conditions to establish liability. The bill would also make related findings and declarations. The bill would require courts to liberally interpret California’s antitrust laws to best promote free and fair competition, as provided.
Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF