California Attorney General Rob Bonta and Senator Melissa Hurtado have introduced a new bill aimed at strengthening the state's antitrust laws. Senate Bill 763 (SB 763) is designed to deter corporations from engaging in activities that restrict trade, fix prices, and reduce competition. These actions can lead to higher prices and negatively impact workers, businesses, and consumers.
Currently, some large corporations consider penalties for antitrust violations as just another cost of doing business. SB 763 seeks to address this by increasing criminal penalties and introducing civil penalties for violations of California’s Cartwright Act.
Attorney General Bonta stated, "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."
Senator Hurtado emphasized the need for change: "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."
Antitrust violations occur when companies collude or gain significant market power through illegal practices. Such actions reduce competition and allow companies to raise prices without fear of losing customers. The Cartwright Act currently prohibits agreements that restrain trade or prevent competition but has not seen updated penalties in decades.
The proposed legislation would increase criminal fines for corporate violators from $1 million to $100 million per violation and raise individual fines from $250,000 to $1 million per violation. It also proposes extending imprisonment terms for felony violations and introduces civil penalties up to $1 million per violation.
Attorney General Bonta has prioritized robust antitrust enforcement within California's Department of Justice. Recent actions include blocking a merger between Kroger and Albertsons in December 2024 due to concerns over rising grocery prices.
To support these efforts further, the California Department of Justice has launched an Antitrust Complaint Form allowing individuals to report potentially anticompetitive conduct.