Covered provider: goods and services: self-preferencing conduct.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Privacy, Digital Technologies, and Consumer Protection
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill aims to prevent large online platforms, known as ‘covered providers,’ from unfairly favoring their own products and services over those of other businesses operating on their platforms. Specifically, it prohibits practices like manipulating search results, restricting data portability, and using artificial intelligence to create an uneven playing field. The bill expands on existing antitrust laws to address these concerns and provides a framework for enforcement.
Key provisions
- Defines ‘covered provider’ based on platform size and market capitalization.
- Prohibits ‘self-preferencing conduct,’ including manipulating search results and exploiting data.
- Restricts restrictions on interoperability and data portability for business users and consumers.
- Establishes an affirmative defense for certain conduct that serves a pro-competitive purpose.
- Exempts objective content, such as mathematical calculations, from the restrictions.
- Allows for the use of artificial intelligence, subject to specific conditions to prevent bias.
- Expands the scope of enforcement to include actions under the Cartwright Act.
- Provides for cumulative remedies and penalties for violations.
Who is affected
- Large online platforms (covered providers)
- Businesses using these platforms
- Consumers using these platforms
- Digital marketplace participants
Bill text
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Sponsors
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1 on record
Primary sponsor
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