Aguiar-Curry's COMPETE Act Advances Out of Assembly Appropriations Committee

(SACRAMENTO, CA) — Assembly Bill 1776 (AB 1776), the Competition and Opportunity in Markets for a Prosperous, Equitable and Transparent Economy (COMPETE) Act, passed the Assembly Appropriations Committee on May 14. The bill advances to the assembly floor for a vote.

“California families and small businesses are facing the consequences of decades of consolidated market power—from higher prices at the checkout counter everyday to lower wages on payday. AB 1776 can help fix that by protecting market competition so a single company can’t crush competitors in an industry,” said Aguiar-Curry. “Opponents of my bill are trying to portray it as anti-business when it is, in fact, pro-business and pro-competition. The question people should be asking is, why are the largest business advocacy organizations not supporting a bill that benefits nearly 99% of their members? This is business-on-business violence, and we shouldn’t be taking the side of the bully.”

The bill seeks to preserve longstanding protections for legitimate business growth and scale, while targeting only harmful conduct that raises costs, suppresses wages, and limits business opportunities for Californians at a time when it’s more expensive than ever to live. AB 1776 would modernize California’s 119-year-old antitrust law by clarifying that anti-competitive conduct by a single company would violate state law and reaffirm that California courts are not bound by federal antitrust case law. It would codify unanimous recommendations from the California Law Revision Commission following years of expert study and public input that examined the effects of growing market concentration across industries. By clarifying state law and strengthening enforcement tools, the COMPETE Act aligns California with 45 other states that recognize anti-competitive conduct by a single firm as illegal under state antitrust statutes.

With passage of the COMPETE Act, California would continue to be a baston of consumer protection and economic fairness as federal antitrust enforcement continues to erode. Coalition members have this to say about AB 1776 advancing to the assembly for a floor vote:

“AB 1776 moving forward is a big step for consumers and small businesses. The COMPETE Act will bring much-needed reform to California by enhancing competition, driving innovation, and promoting affordability,” said Executive Director Robert Herell, Consumer Federation of California. “Households across the state are struggling while monopolies do better than ever. The State Assembly should support AB 1776 and send it promptly to the State Senate.”

"Small businesses are not asking for special treatment -- they are simply demanding opportunity. At a time when the divide between Main Street businesses and large corporations has never been greater, small businesses want to see California antitrust law updated to reflect the needs of a modern economy and the needs of today's entrepreneurs. The COMPETE Act is requisite to restoring fair competition because it gives small business owners, the workers they hire and their local communities a fighting chance," said California Director Bianca Blomquist, Small Business Majority.

“When multi-billion-dollar corporations operate as monopolies, they can use their market power to suppress wages and unilaterally raise prices on products, making everything less affordable for working people," said President Lorena Gonzalez, California Federation of Labor Unions, representing 1,300 unions and 2.3 million union members. "AB 1776 will create new tools to go after monopolies and tackle their anti-competitive practices when a single corporation is rigging the system to raise prices, lower wages, and make it harder for workers to unionize."

President Mark Ramos, UFCW Western States and Local 1428 said, “In my 30-plus years in the industry, I have seen firsthand the effects of market consolidation. I was able to buy a house as a union grocery worker, but that’s a far-off dream for our members now. Consolidation enables employers to suppress workers' wages. UFCW is proud to support the COMPETE Act to see workers’ paychecks grow.”

“We are proud to see AB 1776 clear the Appropriations Committee and move one step closer to becoming law. This is a win for small businesses, working families, and everyday Californians who have been paying the price of unchecked corporate consolidation for far too long. California has always led the way on economic innovation and fairness—and today, the legislature is making clear that fair competition, not corporate consolidation, is the future of our economy,” said Chief Advocacy Officer Samantha Gordon, TechEquity.

“Monopoly abuse is one of the biggest reasons life keeps getting more expensive. When dominant corporations squeeze more profits from consumers, suppress wages for workers, and stifle the small businesses and entrepreneurs trying to compete, we all pay the price. This vote moves California one step closer to rules that match our modern economy. We thank Assembly Majority Leader Aguiar-Curry and our fantastic coalition partners for their continued leadership," said Legislative Advocate Loyal Terry, Economic Security California Action.

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Assemblymember Cecilia Aguiar-Curry represents California’s 4th Assembly District, which includes all of Lake, Colusa, Napa, and Yolo Counties, and part of Sonoma County. She serves as the Assembly Majority Leader and Chair of the California Women’s Legislative Caucus.