Golden State Today

California Attorney General Rob Bonta and Senator Melissa Hurtado have introduced Senate Bill 763 (SB 763), aiming to strengthen California's antitrust laws. The bill seeks to deter corporations from engaging in practices that restrain trade, fix prices, and reduce competition. These actions can lead to increased prices and negatively impact workers, businesses, and consumers.

Attorney General Bonta emphasized the need for tougher penalties, stating, "Too many wealthy corporations see penalties for breaking the law as simply the cost of doing business. SB 763 would sharpen the teeth of a century-old law by increasing penalties for those looking to illegally profit at the cost of workers, consumers, and honest businesses." He also highlighted California's responsibility as a major economy to maintain a fair marketplace amid corporate mergers and market consolidation.

Senator Hurtado added her perspective on the issue: "This is about power — the power of corporations, market manipulators, and bad actors who rig prices, suppress wages, and tilt the playing field in their favor." She stressed that Californians have borne an unfair economic burden due to rule-breakers profiting while honest businesses struggle.

Antitrust violations often result in higher consumer costs when companies engage in illegal practices that limit competition. The Cartwright Act currently prohibits such agreements but has outdated penalties insufficient for deterring anticompetitive activities today.

SB 763 proposes several changes:

- Increasing criminal fines for corporate violators from $1 million to $100 million per violation.

- Raising criminal fines for individuals from $250,000 to $1 million per violation.

- Extending imprisonment terms for felony violations.

- Introducing civil penalties up to $1 million per violation based on misconduct severity.

Attorney General Bonta has prioritized robust antitrust enforcement within California's Department of Justice. Notable actions include halting a significant grocery merger in December 2024 and pursuing legal action against various companies accused of anticompetitive conduct.

The legislation text is available online for further review.