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Earlier this week, California lawmakers passed AB 1776, the Competition and Opportunity in Markets for a Prosperous, Equitable and Transparent Economy (COMPETE) Act, which broadens the state's principal antitrust statute to reach anticompetitive conduct by a single firm.
Why it matters: IFA opposed the bill for its potential adverse impact to common franchise practices like cooperative purchasing and uniform brand standards. The bill was scaled back in the Senate, leaving suggested and maximum resale pricing, national value promotions, and designated supplier and rebate programs to be governed by existing California antitrust law but requiring franchisors to now consider the “market power” they hold over franchisees and how monopsony theories will be applied to labor markets.
What’s next: The measure was sent to California Governor Gavin Newsom, who must sign it by September 30, 2026 for the law to take effect January 1, 2027.
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