BILL NUMBER: S335
SPONSOR: GIANARIS
 
TITLE OF BILL:
An act to amend the general business law, in relation to actions or
practices that establish or maintain a monopoly, monopsony or restraint
of trade, and in relation to authorizing a class action lawsuit in the
state anti-trust law
 
PURPOSE:
To specify that any actions or practices which attempt to establish a
monopoly or monopsony are illegal and void; to make unlawful that
persons in a dominant position in the conduct of any business, trade, or
commerce, in any labor market, abuse that dominant position; to prohibit
certain vertical restraints; to establish premerger notification
requirements; to allow for private enforcement and recoverable damages
to be recovered; and to prohibit unfair methods of competition.
 
SUMMARY OF PROVISIONS:
Section one of the bill provides the title, the "Twenty-First Century
Anti-Trust Act"
Section two of the bill sets forth its legislative purpose: To protect
the interests of the people of New York by ensuring any attempt to
create a monopoly or monopsony is prohibited by law, and to declare that
effective enforcement against unilateral anti-competitive conduct has
been impeded by courts.
Section three of the bill amen& § 340 of the general business law as
follows:
Subdivision 1 is amended by adding the term "monopsony."
Subdivision 2 declares any monopolization or monopsonization, attempted
monopolization or monopsonization, or assertion of dominance which
restrains trade or commerce unlawful. It also details the types of
direct and indirect evidence that may be used to demonstrate that a
person has dominance, and the types of conduct that constitute an abuse
of that dominance. This subdivision also provides that certain
restraints are presumed to be illegal when engaged in by dominant firms.
Finally, subdivision 2 sets rulemaking authority for the Office of the
Attorney General (OAG) and provides for a legislative veto of such rule-
making.
Subdivision 4 and 5 are amended to make clear that collective bargaining
agreements, and the creation, production, and dissemination of motion
pictures are not to be considered evidence of a violation under the
section.
Subdivision 8 allows any person harmed by the provisions of this section
to bring suit.
Subdivision 9 states that any damages recoverable pursuant to this
section be recovered in any action which a court may authorize to be
brought as a class action.
Subdivision 10 clarifies that an "arrangement" includes, but is not
limited to, a contract, combination, agreement, or conspiracy.
Subdivision 11 provides for premerger notification to be filed with the
attorney general and sets a penalty for those who fail to comply with
the subdivision. In considering any proposed mergers, the attorney
general shall consider such transaction's effects on labor markets by
creating a process for affected workers to meaningfully comment on such
transactions.
Section four of the bill amends § 341 of the general business law to set
criminal penalties to $1,000,000 for individuals, and $100,000,000 for
corporations to conform with federal law and extend the statute of limi-
tations from three to five years. Criminal penalties under this section
are limited to multilateral conduct, monopolization, and monopsonization
and consist of a class D felony.
Section five of the bill amends § 342-a of the general business law to
include recovery of civil penalties by the attorney general and to amend
the statute of limitations from three to five years under this article.
Section six of the bill amends § 342-b of the general business law to
allow the attorney general to bring action for recovery of damages on
behalf of NYS residents, and as parens patriae.
Section seven of the bill amends the general business law to add a new §
342-d to allow the attorney general and private litigants to recover
expert witnesses' fees and costs if the attorney general and private
litigants prevail in such action for damages.
Section eight of the bill amends the general business law by adding a
new § 348, which prohibits unfair methods of competition. The attorney
general shall have rulemaking authority to declare certain practices as
unfair methods of competition.
Section nine of the bill establishes a severability clause.
Section ten of the bill sets the effective date.
 
JUSTIFICATION:
Anti-trust laws are designed to promote a diverse economy by allowing
for competition and preventing monopolies and monopsonies. Unilateral
actions that seek to create a monopoly are just as harmful as contracts
or agreements of multiple parties to do the same, and thus, such actions
must also be banned by law. In addition, the abuse of a dominant posi-
tion in a market can cause great harm to buyer and seller markets.
Powerful corporations, particularly in Big Tech, have engaged in prac-
tices such as temporary price reduction with the purpose of forcing
competitors to sell their business to them. Such actions are contrary to
the interests of the people of the state of New York and should be
penalized accordingly. Moreover, an abuse of dominance standard like the
one drafted in this bill is used in many other places across the world
both within and outside of the EU and will aid the state in addressing
abuses by dominant firms.
 
LEGISLATIVE HISTORY:
2024: S6748-8 (Gianaris) PASSED SENATE / A10323 (Peoples-Stokes) died in
econ. dev.
2023: S6748 (Gianaris) PASSED SENATE
2022: S933-C (Gianaris) PASSED SENATE / A1812-A (Dinowitz) died in
economic development
2021: S933-A (Gianaris) PASSED SENATE / Al 812-A (Dinowitz) died in
economic development
2020: S8700-A (Gianaris) died in Consumer Protection / A10870 (Dinowitz)
died in economic development
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S335: 341 general business law, 342-a general business law, 342-b general business law