Governor Newsom signs historic law to stop big business from shutting out competition, cuts red tape to speed up business permitting - gov.ca.gov

October 1, 2026 Malcolm Knoll Business

Governor Newsom Signs Historic Law to Boost Small Business Competition

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Governor Newsom signs historic law to stop big business from shutting out competition, cuts red tape to speed up business permitting (September 30, 2026)

The Golden State is home to over 7.6 million small businesses, the most in America, and today Governor Newsom is signing legislation to encourage fair competition and expand opportunities for entrepreneurs and workers.

SACRAMENTO – Governor Gavin Newsom announced he has signed new legislation to level the playing field for California’s small businesses, cut red tape, strengthen competition, and give entrepreneurs more tools to open businesses, grow, and succeed.

The new laws will:

  • Crack down on monopolies.
  • Help turn vacant storefronts into thriving pop-up businesses by requiring cities to create a new permit allowing pop-up businesses to operate in vacant stores for up to 120 days.
  • Speed up commercial permitting by streamlining qualifying small business tenant-improvement permits and holding local governments accountable for timely reviews.
  • Protect businesses from abusive financial practices.

Governor Newsom is making California’s economy work better for consumers, workers, and entrepreneurs, not just the biggest and best-connected.

California didn’t become the fourth-largest economy in the world by chance. We got here because of the innovators, risk-takers, and entrepreneurs who started small and helped build this state from the ground up. Today we’re leveling the playing field for small businesses by making it easier to open and expand businesses, cutting red tape, and protecting competition.

"California should be a place where our small businesses, workers, and entrepreneurs get a fair shot, and where consumers aren’t held hostage by companies that have crushed their competition and can now raise prices unchecked," said Assembly Majority Leader Aguiar-Curry (D-Winters). “Thank you to Governor Newsom for signing the COMPETE Act, and to everyone who helped make it happen. California now has stronger tools to protect our small businesses, workers, and consumers and to make sure our markets work for everyone.”

Here’s how new legislation signed by Governor Newsom will help power Golden State small businesses:

  • Making a major update to California’s antitrust and consumer protection laws. Clamping down on anti-competitive behavior, encouraging competition, and expanding opportunities for entrepreneurs and workers — including by creating new authority for the Attorney General and district attorneys to combat monopolistic behavior while also protecting small businesses.

  • Requiring cities to create a new permit that allows pop-up businesses to operate in vacant stores for up to 120 days, helping to drive up foot traffic and expand opportunities for small businesses.

  • Streamlining qualifying small business tenant-improvement permits by requiring local governments to provide applicants with a plan-check timeline and, when review is excessively delayed, allowing specified small businesses to use approved third-party services.

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