Cartwright Act: violations

The law expands California antitrust protections against businesses using market power to harm competition, including competition for workers. It establishes the proof rules, exemptions, and court process for these claims.

What the law does ​

• Makes it illegal to monopolize, attempt to monopolize, maintain a monopoly or monopsony, or conspire to do so in trade or commerce.
• Requires courts to apply California’s rule-of-reason framework and requires proof of substantial market power through direct or indirect evidence.
• Exempts qualifying California small businesses with no more than 100 employees and average annual gross receipts of $10 million or less.
• Protects conduct under government-granted and supervised exclusive franchises, contracts, licenses, and permits.
• Requires these cases to be filed as complex cases and directs courts to interpret California antitrust laws broadly to promote competition.

Who it affects ​

• Businesses with substantial power over sales markets or markets for purchasing goods, services, or labor.
• Workers when anticompetitive practices restrict their ability to choose employment.
• The Attorney General and district attorneys, who alone may bring claims under the new monopolization provision.
• Small businesses and entities acting within government-authorized exclusive arrangements, which are exempt or protected in specified circumstances.

Context ​

A violation of the new provision generally cannot be used as the basis for a private unfair-competition claim.