California State Legislature Approves Increased Penalties for Antitrust Violations
Client Alert | September 15, 2025
The proposed law would increase penalties for companies and introduce penalties for individuals.
On September 12, 2025, the California State Legislature voted to approve SB-763, a measure that would increase the penalties faced by those found to have violated state antitrust laws.[1] This measure substantially raises potential penalties for civil and criminal violations of California’s antitrust statutes and, for the first time, introduces a $1 million penalty for individuals who violate the law.
If enacted, the bill would authorize the following financial penalties:
| Penalty Target | Original Penalty | SB-763 Proposed Penalty |
| Company – Criminal | $1 million | $6 million |
| Company – Civil | $250,000 | $1 million |
| Individual – Criminal & Civil | No penalty | $1 million |
.
The bill allows fines to exceed these amounts up to the “pecuniary loss” caused by a violation. The bill also authorizes the fines to be cumulative with one another and other penalties available under state law.
Importantly, the bill states that a $1 million civil penalty “shall be assessed . . . in any civil action brought by the Attorney General or district attorney against any person, corporation, or business entity for each violation.” However, the passed bill did not include originally proposed language for increasing prison sentences for individuals found guilty of criminal violations of state antitrust law.
The increased penalties imposed by SB-763 could create heightened risk for businesses accused of antitrust violations under California law. This is consistent with California’s ongoing efforts to reform the state’s antitrust laws and would further increase scrutiny for businesses operating in California, as summarized in our January 15, 2025, March 25, 2025, and June 23, 2025 Client Alerts.
SB-763 now must be signed by the Governor before it can become law. If signed, SB-763 will go into effect on January 1, 2026.
[1] SB-763, 2025-2026 Reg. Sess. (Cal. 2025).
Gibson Dunn’s lawyers are available to assist in addressing any questions you may have regarding the proposed penalties under California law or California antitrust law more generally. Please contact the Gibson Dunn lawyer with whom you usually work, the authors, or any of the following leaders and members of the firm’s Antitrust and Competition practice group in California:
Rachel S. Brass – San Francisco (+1 415.393.8293, rbrass@gibsondunn.com)
Christopher P. Dusseault – Los Angeles (+1 213.229.7855, cdusseault@gibsondunn.com)
Caeli A. Higney – San Francisco (+1 415.393.8248, chigney@gibsondunn.com)
Julian W. Kleinbrodt – San Francisco (+1 415.393.8382, jkleinbrodt@gibsondunn.com)
Samuel G. Liversidge – Los Angeles (+1 213.229.7420, sliversidge@gibsondunn.com)
Daniel G. Swanson – Los Angeles (+1 213.229.7430, dswanson@gibsondunn.com)
Jay P. Srinivasan – Los Angeles (+1 213.229.7296, jsrinivasan@gibsondunn.com)
Chris Whittaker – Orange County (+1 949.451.4337, cwhittaker@gibsondunn.com)
© 2025 Gibson, Dunn & Crutcher LLP. All rights reserved. For contact and other information, please visit us at www.gibsondunn.com.
Attorney Advertising: These materials were prepared for general informational purposes only based on information available at the time of publication and are not intended as, do not constitute, and should not be relied upon as, legal advice or a legal opinion on any specific facts or circumstances. Gibson Dunn (and its affiliates, attorneys, and employees) shall not have any liability in connection with any use of these materials. The sharing of these materials does not establish an attorney-client relationship with the recipient and should not be relied upon as an alternative for advice from qualified counsel. Please note that facts and circumstances may vary, and prior results do not guarantee a similar outcome.