Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1982 Compare Versions

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22 HOUSE DOCKET, NO. 4047 FILED ON: 1/17/2025
33 HOUSE . . . . . . . . . . . . . . . No. 1982
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Lindsay N. Sabadosa
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to the protection of small businesses and workers.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Lindsay N. Sabadosa1st Hampshire1/17/2025 1 of 7
1616 HOUSE DOCKET, NO. 4047 FILED ON: 1/17/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 1982
1818 By Representative Sabadosa of Northampton, a petition (accompanied by bill, House, No. 1982)
1919 of Lindsay N. Sabadosa relative to the Massachusetts Antitrust Act. The Judiciary.
2020 The Commonwealth of Massachusetts
2121 _______________
2222 In the One Hundred and Ninety-Fourth General Court
2323 (2025-2026)
2424 _______________
2525 An Act relative to the protection of small businesses and workers.
2626 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2727 of the same, as follows:
2828 1 SECTION 1. Section 2 of chapter 93 of the General Laws, as appearing in the 2022
2929 2Official Edition, is hereby amended by inserting after the definition of “Demand” the following 3
3030 3definitions:-
3131 4 "Monopoly power", the power to control prices or exclude competition. A firm has
3232 5monopoly power if the firm is able to profitably raise prices substantially above the competitive
3333 6level for a significant period of time. A firm also has monopoly power if the firm can exclude
3434 7competitors.
3535 8 "Monopsony", a market condition where only one buyer exists.
3636 9 "Monopsony power", where an individual buyer is able to influence demand and price for
3737 10a good or service.
3838 11 SECTION 2. Said section 2 of said chapter 93, as so appearing, is hereby further
3939 12amended by striking out the definition of “New England”. 2 of 7
4040 13 SECTION 3. Said section 2 of said chapter 93, as so appearing, is hereby further
4141 14amended by striking out, in lines 17 and 18, the words “; provided, however, that trade or
4242 15commerce shall not include the conveyance, transfer or use of real property”.
4343 16 SECTION 4. Section 4 of said chapter 93, as so appearing, is hereby amended by adding
4444 17the following paragraph:-
4545 18 Every contract, agreement, arrangement or combination shall be against public policy and
4646 19unlawful if:
4747 20 (i) it establishes or maintains a monopoly or monopsony in the conduct of any business,
4848 21trade or commerce or in the furnishing of any service in the commonwealth;
4949 22 (ii) it restrains or may restrain competition or the free exercise of any activity in the
5050 23conduct of any business, trade or commerce or in the furnishing of any service in the
5151 24commonwealth; or
5252 25 (iii) it restrains or may restrain, for the purpose of establishing or maintaining a
5353 26monopoly or monopsony or unlawfully interfering with the free exercise of any activity in the
5454 27conduct of any business, trade or commerce or in the furnishing of any service in the
5555 28commonwealth, any business, trade or commerce or the furnishing of any service.
5656 29 SECTION 5. Said chapter 93 is hereby further amended by striking out section 5, as so
5757 30appearing, and inserting in place the following section:-
5858 31 Section 5. (a) It shall be unlawful for any person or persons to monopolize or
5959 32monopsonize, or attempt to monopolize or monopsonize, or combine or conspire with any other 3 of 7
6060 33person or persons to monopolize or monopsonize any business, trade or commerce or the
6161 34furnishing of any service in the commonwealth.
6262 35 (b)(1) It is unlawful for any person or persons with a dominant position in the conduct of
6363 36any business, trade or commerce, in any labor market, or in the furnishing of any service in this
6464 37commonwealth, to abuse the dominant position.
6565 38 (2) In any action brought under this subsection, a person's dominant position may be
6666 39established by direct evidence, indirect evidence, or a combination of the two. Examples of
6767 40direct evidence include, but are not limited to, reduction in output or in quality of goods or
6868 41services, the imposition of supracompetitive prices, or the ability to force, induce or otherwise
6969 42coerce a supplier to offer a lower price, discount, advertising allowance or other service than
7070 43what the supplier offers others. In labor markets, examples of direct evidence of a dominant
7171 44position include, but are not limited to, the imposition of subcompetitive wages or working
7272 45conditions; the repeated violation of laws protecting workers such as labor laws, wage-and-hour
7373 46laws and workplace health and safety laws; or the interference with, restraint of or coercion of
7474 47workers in the exercise of their full freedom of association to obtain acceptable terms and
7575 48conditions of employment, including through self-organization, designation of workplace
7676 49representatives and engagement in concerted activities for the purposes of collective bargaining
7777 50or other mutual aid or protection. Direct evidence of dominant position includes conduct that is
7878 51carried out directly or indirectly through another entity or person such as an independent
7979 52contractor or other intermediary.
8080 53 (3) A person's dominant position may also be established by indirect evidence such as the
8181 54person's share of a relevant market. A person who has a share of 40 per cent or greater of a 4 of 7
8282 55relevant market as a seller shall be presumed to have a dominant position in that market under
8383 56this subsection. A person who has a share of 30 per cent or greater of a relevant market as a
8484 57buyer shall be presumed to have a dominant position in that market under this subsection. When
8585 58determining a relevant market, courts shall examine factors including, but not limited to, industry
8686 59or public recognition of the market as separate and distinct, the product's peculiar characteristics
8787 60and uses, unique protection facilities, distinct customers, distinct prices, sensitivity to price
8888 61changes and specialized vendors.
8989 62 (4) If direct evidence is sufficient to demonstrate that a person has a dominant position or
9090 63has abused such a dominant position, no court shall require definition of a relevant market in
9191 64order to evaluate the evidence, find liability or find that a claim has been stated under this
9292 65subsection.
9393 66 (5) In any action brought under this subsection, abuse of a dominant position may
9494 67include, but is not limited to, conduct that tends to foreclose or limit the ability or incentive of
9595 68one or more actual or potential competitors to compete, such as leveraging a dominant position
9696 69in one market to limit competition in a separate market; refusing to deal with another person with
9797 70the effect of unnecessarily excluding or handicapping actual or potential competitors; coercing
9898 71the purchaser of one product, service or contract into purchasing or obtaining a separate and
9999 72distinct product, service or contract; or engaging in, or coercing a third party into, an exclusive
100100 73agreement or contract that serves to foreclose or increase costs for a competitor. In labor
101101 74markets, abuse may include, but is not limited to, imposing restraints, direct or indirect, on the
102102 75mobility of workers between employers or on the ability of workers to seek employment from
103103 76multiple employers; restricting the freedom of workers and independent contractors to disclose 5 of 7
104104 77wage and benefit information; and wage discrimination based on any undisclosed or hidden
105105 78considerations.
106106 79 (c)(1) Except as provided in paragraph (2) of this subsection, the following restraints are
107107 80presumed to be illegal when engaged in by a firm in a dominant position :
108108 81 (i) any restraint that requires another person to deal exclusively or primarily with the firm
109109 82imposing the restraint or another person specified by that firm or any restraint that has the
110110 83necessary effect of requiring another person to deal exclusively or primarily with the firm
111111 84imposing the restraint or another person specified by that firm;
112112 85 (ii) any restraint that conditions the sale or purchase of any product or services on an
113113 86agreement to sell or purchase another product or service;
114114 87 (iii) any restraint on a person's ability to engage in a profession, trade or business of any
115115 88kind, including any restraint on a person's ability to employ another person;
116116 89 (iv) any restraint on the prices or wages offered by another firm;
117117 90 (v) any restraint on another firm's right to independently decide whether to recognize a
118118 91union of its employees or to otherwise agree to negotiate with its employees collectively over
119119 92terms and conditions of employment;
120120 93 (vi) any restraint that the attorney general, through regulation or rulemaking, determines
121121 94poses a substantial risk of harming competition that is not already presumed illegal; and
122122 95 (vii) any additional restraint that the attorney general determines, through rulemaking,
123123 96generally serves no legitimate business purpose that cannot be achieved in some less restrictive
124124 97way. 6 of 7
125125 98 (2) Paragraph (1) of this subsection shall not apply if the defendant establishes, by clear
126126 99and convincing evidence, that the pro-competitive benefits of the challenged conduct: (i) are
127127 100achievable only through that conduct; and (ii) outweigh that conduct's harm to competition. The
128128 101harm to competition in one market from the challenged conduct may not be offset by purported
129129 102benefits in a separate market; and the harm to a person or persons from the challenged conduct
130130 103may not be offset by purported benefits to another person or persons.
131131 104 (d)(1) The attorney general shall issue guidance on how it will achieve the purposes of
132132 105subsection (b). The attorney general may issue other guidance with respect to subsection (b).
133133 106 (2) Nothing in this section shall be deemed to diminish the jurisdiction of the department
134134 107of public utilities.
135135 108 SECTION 6. Section 10 of said chapter 93, as so appearing, is hereby amended by
136136 109striking out the first paragraph and inserting in place thereof the following paragraph:-
137137 110 Any person who knowingly violates sections 4 or 5 with specific intent to injure any
138138 111person, or knowingly aids or participates in such violation with specific intent to injure any
139139 112person, is guilty of a felony, and on conviction thereof, shall be punished by a fine not exceeding
140140 113$100,000,000 if a corporation, or, if any other person, by a fine not exceeding $100,000 or by
141141 114imprisonment not exceeding 1 year, or both.
142142 115 SECTION 7. Said chapter 93 is hereby further amended by inserting after section 13, as
143143 116so appearing, the following section:- 7 of 7
144144 117 Section 13A. In any action alleging a violation of a provision of this Act, the attorney
145145 118general and private litigants shall recover reasonable fees and costs for its expert witnesses and
146146 119consultants if the attorney general or private litigants prevail in such action.