California Clarifies Antitrust Pleading Standard, Creates Uncertainty on ‘Coercive’ Uses of Algorithmic Software

California Governor Gavin Newsom recently signed into law AB 325, which amends California’s state antitrust law, the Cartwright Act. Effective January 1, 2026, the amendments create a new basis for liability for parties that “coerce” the adoption of prices recommended by common pricing algorithms used by multiple persons and clarify that the pleading requirements for Cartwright Act claims are distinct and more permissive than those under federal antitrust law. This new law creates legal…
By: Morgan Lewis