AB 1776 Threatens More Than $356 Billion In California Small Business Sales Over the Next Five Years

Running a small business in California is already tough. Now, legislators are considering new legislation that will cost small businesses $356 billion in lost sales over the next five years. That’s $71 billion a year, and $16,000 per business every year.

AB 1776 would dramatically change California law, making it harder for large companies—including leading tech companies like Google and Amazon—to offer integrated products and services that help small businesses save time and money, compete, and grow.

Policymakers must consider how new laws will impact small businesses.

Click here to take action and tell your lawmakers to vote no on AB 1776.

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).