![\"Terri](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/04\/1776172332_SAC_0383_RCB_20260401_Littleton.JPG\" "\\"Terri")
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Terri Littleton, 63, a self-employed owner of Terri Does Desserts, places ingredient labels on containers after adding slices of a cake she made earlier on Wednesday, April 1, 2026, in Sacramento. The COMPETE Act targets single-company dominance that squeezes suppliers and workers, helping California small businesses survive and consumers pay less.<\/p>\n
REN\u00c9E C. BYER<\/p>\n
rbyer@sacbee.com<\/p>\n
A small restaurant owner in Los Angeles recently told me she raised her prices again \u2014 not because she wanted to, but because her suppliers did. Meanwhile, she\u2019s competing with a Carl\u2019s Jr across the street, whose dollar menu makes it harder for customers to justify paying more for a handmade torta from a family business.<\/p>\n
With little room to absorb rising costs, her prices may seem high, but they reflect what it takes to make fresh, traditional food and provide quality jobs.<\/p>\n
California\u2019s economy isn\u2019t just expensive, a lack of fair competition is making it harder for small businesses to survive \u2014 which also hurts consumers and workers. That\u2019s dangerous in a state where small business owners account for 99%<\/a> of all businesses and employ roughly half the private-sector workforce.<\/p>\n Under current California antitrust law, it is illegal for two or more companies<\/a> to engage in anti-competitive behavior. But in today\u2019s economy, one company can have so much power that it can eliminate competition unilaterally.<\/p>\n Assemblywoman Cecilia Aguiar-Curry\u2019s Assembly Bill 1776<\/a> acknowledges that anti-competitive behavior by a single, dominant company is illegal. The AB 1776, the Competition and Opportunity in Markets for a Prosperous, Equitable and Transparent Economy (COMPETE) Act, is a practical, overdue step to restore balance for small employers and crack down on anti-competitive behavior that raises costs, suppresses wages and limits opportunity for entrepreneurs.<\/p>\n The COMPETE Act does something simple but powerful: It makes it clear that a monopoly violates the law when engaging in anti-competitive conduct to maintain or grow its dominance. The bill does not change the standards of evidence or the enforcement mechanisms that have long been part of California law, but it does clarify that California law is not trumped by federal law.<\/p>\n This will align California with 34 other states<\/a> that recognize the ability of one predatory company to eliminate competition. Over the past few decades, entire industries have consolidated into a few dominant players. Small Business Majority research shows 56%<\/a> of small businesses say one or more large companies dominate their market, and 44% report rising monopolistic practices<\/a>. This concentration is a key driver of California\u2019s affordability crisis.<\/p>\n But what does that look like in real life? When one or two companies control supply chains, small businesses lose bargaining power, pay more for goods and pass costs on to other businesses \u2014 ultimately raising prices for consumers. Higher costs keep wages stagnant, while dominant firms block smaller competitors. It\u2019s no coincidence that entrepreneurship falls as markets consolidate.<\/p>\n The bill doesn\u2019t change who can file a legal challenge. It\u2019s less about \u201ccan you sue?\u201d and more about \u201ccan you win?\u201d AB 1776 clarifies that existing antitrust rules apply to single-firm conduct, but it doesn\u2019t make those cases easier to prove. A plaintiff would still have to define a market, show the defendant has monopoly power in that market, prove exclusionary conduct and demonstrate real harm. Simply opening across the street or offering lower prices doesn\u2019t come close.<\/p>\n AB 1776 kicks in when a firm with real market power uses it in ways that cross the line (discriminatory pricing or restricting access to suppliers, for example). It would allow small business to compete on a similar footing with Carl\u2019s Jr.<\/p>\n