California to Focus on Criminal Antitrust Enforcement

On March 6, 2024, the highest-ranking antitrust enforcer in the California Attorney General’s Office confirmed the office is “reinvigorating criminal prosecutions under the Cartwright Act.”

While the Carwright Act has civil and criminal provisions, it has been more than 25 years since a criminal prosecution has been pursued. The statement was made at the ABA National Institute on White Collar Crime in San Francisco by Senior Assistant Attorney General Paula Blizzard.

Generally, courts consider the Carwright Act to mirror the Sherman Act since it was modeled on the Sherman Act. However, the state considers its statute to be “broader” than the Sherman Act. Criminal convictions may result in a fine up to $1 million for a corporation, or up to three years in prison and a fine up to $250,000; however, the fine may be higher if twice the pecuniary gain or loss is greater.

Based on this heightened focus, companies conducting business in California should ensure their compliance programs address this new development.

(This article originally appeared in the March 2024 Cartel Enforcement Trends and Developments newsletter.)