Attorney General Bonta, Senator Hurtado Unveil Bill to Sharpen California's Antitrust Law

Bill would increase penalties for corporations that break California law

OAKLAND — California Attorney General Rob Bonta and Senator Melissa Hurtado (D-Bakersfield) today unveiled Senate Bill 763 (SB 763), legislation seeking to more effectively deter corporations from restraining trade, fixing prices, and reducing competition — actions that can raise prices and harm workers, businesses, and consumers. Currently, many powerful corporations view antitrust enforcement as just another cost of doing business. SB 763 would increase criminal penalties and add civil penalties for violations of California’s Cartwright Act.

“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,” said Attorney General Rob Bonta. “As the fifth largest economy in the world, and home to some of the wealthiest corporations, California has a responsibility to fight for a fair and competitive marketplace, especially amid the unprecedented wave of corporate mergers and market consolidation that we are seeing today. I thank Senator Hurtado for introducing this bill to help ensure we have the appropriate tools to protect a vibrant and just 21st century economy.” 

“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,” said Senator Melissa Hurtado (D-Bakersfield). “For too long, Californians have shouldered the burden of an economy where those who break the rules profit while honest businesses and working families struggle. That ends now. SB 763 ensures that violating antitrust laws comes with real consequences, not just a slap on the wrist.”

What is Antitrust?

Antitrust violations can lead to rising costs for consumers because when companies collude or gain significant market power through illegal anticompetitive practices, they have less pressure to keep prices low and can raise prices without fear of losing customers to other competitors. Competitive marketplaces established through antitrust vigilance help consumers by ensuring fair prices for goods and services, an array of products to choose from, quality goods and services, and the steady introduction of innovative new products.

California’s Cartwright Act prohibits agreements between corporations to restrain trade, limit production, and fix prices or otherwise prevent competition. The existing penalties for violations of the Cartwright Act have not been updated in decades and are insufficient to deter anticompetitive activity in the current market. 

SB 763 

SB 763 would increase criminal penalties and add civil penalties under the Cartwright Act. 

Specifically, SB 763 would: 

• Increase the criminal fines for corporate violators from $1 million to $100 million per violation.
• Increase the criminal fines for individuals from $250,000 to $1 million per violation.
• Increase the term of imprisonment for a felony violation to two, three, or five years (currently one, two, or three years).
• Add civil penalties of up to $1 million per violation that courts can impose based on factors such as the nature, seriousness, and persistence of the misconduct.

Antitrust and the California Department of Justice

Attorney General Bonta has made robust antitrust enforcement a top priority, working to expand the size of the California Department of Justice’s Antitrust Section and leading the charge within the state and across the country.  

In December 2024, Attorney General Bonta secured the abandonment of the Kroger-Albertsons merger, which threatened to raise grocery prices and leave Californians with limited choices over where to shop and where to work. In August 2024, Attorney General Bonta filed a lawsuit against RealPage, alleging that its anticompetitive conduct harmed consumers by decreasing competition among landlords, limiting price negotiation, and increasing prices in the rental housing industry. In July 2024, Attorney General Bonta announced a $50 million settlement with gas trading firms, resolving allegations that the firms secretly worked together to tamper with and manipulate spot market prices for California gasoline. In September 2022, Attorney General Bonta sued Amazon, alleging that the company stifled competition and caused increased prices across California through its anticompetitive contracting practices. 

As part of the Attorney General’s commitment to enforcing antitrust laws, the California Department of Justice recently launched a new Antitrust Complaint Form. Please click here to report anticompetitive conduct that potentially violates antitrust laws.

The text of the legislation is available here.