by Eyitayo “Tee” St. Matthew-Daniel, Joshua Hill Jr., Christopher M. Wilson, and Yoosun Koh
Eyitayo “Tee” St. Matthew-Daniel, Joshua Hill Jr., Christopher M. Wilson, and Yoosun Koh (Photos courtesy of Paul, Weiss)
On October 6, 2025, California enacted AB 325 and SB 763. These two laws amend the state’s primary antitrust statute, the Cartwright Act, which generally prohibits combinations or agreements between two or more entities in restraint of trade, such as agreements to fix prices or to limit production. These amendments are effective as of January 1, 2026.
Together, AB 325 and SB 763:
- Add two new Cartwright Act violations related to the use or distribution of “common pricing algorithms.”
- Lower the pleading standard for Cartwright Act claims.
- Establish civil penalties for violations of the Cartwright Act and increase maximum criminal penalties.
- Make remedies and penalties for Cartwright Act violations cumulative.
Below, we provide a high-level overview of the new laws and offer some observations.