AB 1776 Threatens More Than $356 Billion In California Small Business Sales Over the Next Five Years
Legislation like AB 1776, AICOA, and abuse-of-dominance proposals that discourage digital platforms from integrating products and services can significantly harm the small businesses that rely on those tools to compete and grow.
AB 1776 · the COMPETE Act
$356 billion
at risk in California small business sales over the next five years
Cumulative California small business sales at risk, based on $71 billion annually.
California Small Businesses Depend on Integrated Platform Services
Google Business
Profile
Helps local businesses get discovered by nearby customers
Fulfillment
by Amazon
Gives small businesses affordable nationwide warehousing, shipping, returns, and customer service
Google Ads
& Meta Ads
Enables entrepreneurs to reach new customers and compete with much larger businesses
Methodology
California represents 11.88% of all U.S. small businesses (4.3 million of 36.2 million nationwide). The estimates above apply California's share of U.S. small businesses to Professor John T. Scott's published national economic analysis of legislation that discourages integrated platform services.
These figures are an analytical application of Professor Scott's methodology and are not estimates published by Professor Scott or the Data Catalyst Institute.
Sources
John T. Scott, Estimates of Harm to Small Business Retailers from Antitrust Legislation. Directed at Large Digital Platforms (Data Catalyst Institute, 2022)
U.S. Small Business Administration, California Small Business Profile (2025)
U.S. Small Business Administration, Frequently Asked Questions About Small Business (2026).
