SB 1074 · 2025-26
Bans covered providers from favoring their own products
Official subject Covered provider: goods and services: self-preferencing conduct.
Didn't pass Stopped in the Senate · Failed a committee vote
Plain-language summary
Prohibits covered providers from favoring their own products or services over those of business users, including by changing search rankings. Bans limits on interoperability and on users getting a portable copy of their data. Objective content like unit conversions is exempt in some cases. Violations are enforced like California's antitrust law (the Cartwright Act).
Subject changed
This bill originally dealt with telephonic seller rules; it was rewritten to cover covered providers favoring their own products.
Official summary · Legislative Counsel's Digest
Describes the final version (Amended Senate, April 6, 2026).
Read the official summary (5 paragraphs)
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.
Official title
An act to add Chapter 2.6 (commencing with Section 16850) to Part 2 of Division 7 of the Business and Professions Code, relating to business.
Timeline
- Feb. 13, 2026 Introduced
- April 20, 2026 Stopped in the Senate Failed a committee vote
Full official history (10 actions)
- Feb. 13, 2026 Introduced: Introduced. Read first time. To Com. on RLS. for assignment. To print.
- Feb. 17, 2026 From printer. May be acted upon on or after March 16.
- Feb. 26, 2026 Referred to Com. on RLS.
- March 18, 2026 From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
- March 25, 2026 Re-referred to Coms. on JUD. and P., D.T., & C.P.
- April 2, 2026 Set for hearing April 14.
- April 6, 2026 From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
- April 10, 2026 Set for hearing April 20 in P., D.T., & C.P. pending receipt.
- April 15, 2026 From committee: Do pass and re-refer to Com. on P., D.T., & C.P. (Ayes 8. Noes 1. Page 3868.) (April 14). Re-referred to Com. on P., D.T., & C.P.
- April 20, 2026 April 20 set for first hearing. Failed passage in committee. (Ayes 3. Noes 3. Page 3957.) Reconsideration granted.