AB 1776 COMPETE Act

A strong economy relies on dynamic competition. Introducing AB 1776.

Retail stores compete for our money. Companies compete for workers. Social media platforms compete for our attention. The well-being of our economy depends on this competition to keep prices down while driving up the quality of products, services, and jobs.

But sometimes, large companies make unfair moves to lessen competition. They use their size and connections to make backroom deals, pressure other companies to purchase unwanted products to secure the ones they actually need, and set up roadblocks for rivals and new players. This is known as Single Firm Conduct, and current economic imbalances make it easier to engage in these power plays. Since the 1990s, 75% of US industries have experienced increases in market concentration—defined as when only a few companies dominate an industry.

The costs of foul play are then passed on to everyday people—higher prices, lower wages, and less choice. Entrepreneurship and innovation also suffer as small businesses are squeezed out, and the larger companies left standing no longer need to be the best to stay competitive and secure our hard-earned dollars.

Competition in California is protected by the Cartwright Act, but the law can be hard to enforce, as recently noted by the California Law Revision Commission (CLRC). Luckily, the CLRC also outlined some solutions.

That’s why Assemblymember Cecilia Aguiar-Curry authored AB 1776, the Competition and Opportunity in Markets, for a Prosperous, Equitable, and Transparent Economy (COMPETE) Act. AB 1776 promotes a fair economy by strengthening competition, opportunity, innovation, and entrepreneurship by codifying the CLRC’s unanimous recommendations to update state antitrust law. 

AB 1776 is sponsored by TechEquity Action, American Economic Liberties Project, California Federation of Labor Unions, California Nurses Association, Consumer Federation of California, Economic Security California/Action, SEIU California, Small Business Majority, Teamsters California, United Food and Commercial Workers, Western States Council, and the Writers Guild of America West.

Want to stay in the loop as AB 1776 makes its way through the California Legislature? Sign up for our newsletter to get updates on this campaign, as well as other key initiatives to address tech’s impact on our lives.

What AB 1776 will do

The COMPETE Act promotes a fair economy by strengthening competition, opportunity, innovation, and entrepreneurship by codifying the CLRC’s unanimous recommendations to update state antitrust law.

It aligns California law with most other states that outlaw single-company anti-competitive conduct, known as Single Firm Conduct, by:

Clarifying how California law should be interpreted

providing courts with more solid, modern definitions, and businesses with more predictable rules of the road

Updating our laws to ensure fair competition

that helps markets remain dynamic and responsive, providing a level playing field, especially for small- and medium-sized businesses

This bill does not prohibit business growth. It targets anti-competitive conduct that stifles innovation, harms consumers, workers, and small businesses, and exacerbates California’s affordability crisis.

Californians are feeling the squeeze of higher prices, lower wages, and fewer choices. The COMPETE Act is a common-sense step to rein in anti-competitive conduct and ensure competition creates opportunity for everyone. California can lead the way in making sure markets work for people—not just the biggest corporations.

Samantha Gordon Chief Advocacy Officer at TechEquity

AB 1776 is sponsored by TechEquity Action, American Economic Liberties Project, California Federation of Labor Unions, California Nurses Association, Consumer Federation of California, Economic Security California/Action, SEIU California, Small Business Majority, Teamsters California, United Food and Commercial Workers, Western States Council, and the Writers Guild of America West.

How single-firm conduct is hurting people today

Healthcare

Healthcare prices in the U.S. are at an all-time high—partially because of cuts to Medicare, but also because of companies using their size to raise prices. A recent study found that six years after hospitals acquired other hospitals, prices rose by 12.9%, with hospitals that made multiple acquisitions raising prices by 16.3%.

Wages

The job market is incredibly competitive right now—but only from the applicant’s side. According to a leading study, 60% of U.S. labor markets are highly concentrated, representing 20% of U.S. employment. This means that only a handful of companies wield incredible hiring power across most U.S. labor markets. The study also found that “labor market concentration is negatively correlated with wages” across skill levels or job hierarchy.

Share your story