Newsom Approves Higher Penalties Under California Antitrust Law

Companies will face higher penalties for violating California’s antitrust laws under legislation signed by Gov. Gavin Newsom on Monday.

The measure (SB 763) increases the maximum criminal penalty for breaking California’s Cartwright Act to $6 million from $1 million and allows judges to impose a new fine of up to $1 million in civil antitrust cases.

California Attorney General Rob Bonta (D) backed the increase, arguing the previous penalties were insufficient and that higher fines are needed to deter companies from anticompetitive behavior.

California policymakers are weighing a major expansion of the state’s antitrust laws, which has caught ...