This week, Governor Newsom signed new antitrust legislation into law requiring businesses conducting a major merger to provide additional documentation to the California Attorney General.

The new law, formerly known as SB 25 or the California Uniform Antitrust Pre-Merger Notification Act, was authored by State Senator Thomas Umberg and alters California's Business and Professions Code to grant access to merger details already required to be reported to the Federal Trade Commission and the U.S. Department of Justice under federal law to the state's top prosecutor proactively instead of requiring a subpoena.

The new law will apply to pre-merger notifications filed on or after Jan. 1, 2027.

"The Governor’s signature on SB 25 is a strong start to the year," shared State Senator Umberg. "SB 25 is a first-of-its-kind measure in the antitrust space, creating a fairer, more efficient merger review process that balances the needs of businesses while protecting consumers."

Beginning next year, a person filing a pre-merger notification in compliance with Section 201 of the Hart-Scott-Rodino Antitrust Improvement Acts of 1976 with federal agencies will be required to file an electronic copy of that disclosure with the Office of California Attorney General within one business day if the principal place of business is in the state or if the annual net sales in California involved in the transaction of at least 20 percent of the existing reporting threshold.

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