Bill > AB325

This bill modifies the Cartwright Act, California's antitrust law, by introducing new provisions targeting anti-competitive practices involving pricing algorithms. The bill makes it unlawful for businesses to use or distribute "common pricing algorithms" that are part of a contract or conspiracy to restrain trade, or that coerce other businesses to adopt recommended prices or commercial terms. A "common pricing algorithm" is defined broadly as any methodology used by multiple parties that uses competitor data to influence pricing or commercial terms. The bill also changes the standard for filing antitrust complaints, making it easier to bring such cases by allowing complaints that plausibly demonstrate the existence of a potentially anti-competitive agreement, without requiring detailed proof that independent action is impossible. The bill provides specific definitions for terms like "commercial term" and "price," which include various aspects of business transactions such as service levels, output, and employee compensation. Because the bill expands the scope of prohibited activities under the Cartwright Act, it is considered a state-mandated local program, though the bill specifies that no reimbursement is required for implementing these new provisions.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB325