California SB 1074

Existing law, known as the Cartwright Act, defines a "trust" as a combination of capital, skill, or acts by 2 or more persons for certain prohibited purposes, including, among others, creating or carrying out restrictions in trade or commerce, preventing competition in specified activities, including sale or purchase of merchandise or commodities, or entering into certain exclusive dealing agreements that substantially lessen competition or tend to create a monopoly. Existing law authorizes the Attorney General, a district attorney, a specified city attorney, or a person who is injured in their business or property to bring an action for civil or criminal penalties for a violation of those provisions. This bill would prohibit a covered provider, as defined, from preferencing its own products, services, or lines of business over those of another business user, including manipulating the order of search results or rankings to favor the products or services of the covered provider. The bill would prohibit a covered provider from restricting interoperability or data portability, as specified, including restricting a business user or consumer from obtaining a copy of their data in a useful and portable format. This bill would declare that its remedies and penalties are cumulative and enforceable in addition to other specified remedies, and would provide an affirmative defense for certain conduct. The bill would exempt from these provisions displays of objective content, including mathematical calculations and standard unit conversions, under certain conditions. The bill would specify that its provisions are enforceable by the same means, penalties, damages, and fees as under the Cartwright Act, thereby expanding the scope of existing crimes. The bill would declare its provisions severable. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.