Introduction
With the constantly changing federal regulatory landscape, new opportunities for aggressive state-level enforcement are arising in California. Morrison Foerster’s team anticipates that California Attorney General Rob Bonta will have a busy year in 2025, with increased enforcement activity and broad investigations across a number of priorities. This article outlines three key areas that are expected to be of sharp focus: environment, antitrust and technology.
Environmental Actions
As the Trump Administration has taken actions to reverse or roll back many of the Biden Administration’s climate and energy policies, state attorneys general are expected to step in to address the perceived regulatory gaps at the federal level. Bonta, in particular, has emerged as a strong enforcer of the state’s environmental policies, and is anticipated to increase actions against the fossil fuel industry and other alleged corporate polluters. The CA AG has shown a willingness to seek increased penalties and the disgorgement of profits in environmental lawsuits.
Antitrust Investigations
State AGs have become increasingly active in antitrust enforcement, working both collaboratively and independently from federal authorities. The CA AG has been a key player in major merger and conduct investigations and this trend is expected to continue. Examples include the halting of the proposed merger of Kroger and Albertsons, and a lawsuit against Live Nation for alleged unlawful conduct that has stifled competition.
Oversight of Social Media Platforms and AI
The CA AG will continue to address perceived harms presented by technology, with a particular focus on social media and AI. Last year, the CA AG joined a bipartisan group of state AGs urging Congress to pass legislation that would require a US surgeon general warning on all algorithm-driven social media platforms. The CA AG has also brought suits against certain social media platforms for alleged violations of state consumer protection laws. In addition, the CA AG has issued two legal advisories outlining its intention to regulate AI, advising companies that develop, sell or use AI to comply with consumer protection, civil rights, competition, data protection and other laws.
