Bill > AB1776

This bill, amending the Cartwright Act, aims to strengthen protections for free and fair competition in California by prohibiting monopolization and unreasonable restraints of trade. It clarifies that anticompetitive effects in one market cannot be offset by benefits in another, nor can harm to one party be offset by benefits to another. The bill mandates that courts follow specific guidance from the California Supreme Court case *In re Cipro Cases I & II* when evaluating such claims and requires plaintiffs to prove market power, either directly or indirectly. Importantly, it exempts small businesses, defined as those with 100 or fewer employees and $10 million or less in average annual gross receipts over three years, from these new provisions. The bill also emphasizes that interpretations of federal antitrust laws are only instructive, not conclusive, when interpreting California's antitrust laws, which are considered broader in scope. Furthermore, it outlines specific conditions that can serve as evidence of liability under the Cartwright Act, without making any single condition sufficient on its own to establish liability, and requires courts to liberally interpret California's antitrust laws to promote competition.