California’s Antitrust Laws Are Too Irrational to Spread to Other States
Summary
The Goldwater Institute has filed a brief in the Ninth Circuit Court of Appeals to prevent California's unique antitrust laws from being applied to individuals residing in other states. The case involves a class-action lawsuit by vaping product purchasers against Altria, alleging monopolistic practices under California's 1907 Cartwright Act.
Unlike federal law, which utilizes the "consumer welfare test" to prioritize competition and consumer benefits, California's laws focus on protecting businesses from competition. This approach allows less efficient companies to sue competitors rather than improving products or lowering prices. The Institute argues that allowing California's anomalous legal theories to govern out-of-state residents would grant California's legislature undue regulatory power over the entire United States.
(Source:Goldwater Institute)