United States of America: SB 1074 concerning online platform self-preferencing was introduced in Senate

On 13 February 2026, SB 1074 concerning online platform self-preferencing was introduced in the California Senate. The Bill applies to providers operating a digital interface (platform) that allows business users or sellers to connect with consumers or other business users that meet certain thresholds. Such platforms are covered if they had an average of 100'000'000 monthly active users at any time in the past 24 months and were owned or operated by an entity or person, on or after 1 January 2030, that had an average of USD one trillion in or greater in market capitalisation or private valuation in the past 24 months. The Bill prohibits self-preferencing conduct, including but not limited to search result manipulation, use of third-party data to market or develop own products, and employment of policies or practices that cause a business user to operate at an unreasonable cost disadvantage relative to the covered provider. The Bill further prohibits the restriction of interoperability of data between business users and consumers on the platform. Furthermore, the legislation restricts the use of artificial intelligence, including generative AI and recommendation engines, in a manner that systematically favours the platform's own content or commercial partners unless a neutral methodology is applied. Covered providers may invoke an affirmative defence if they establish that their conduct is narrowly tailored and reasonably necessary to achieve procompetitive purposes that outweigh any competitive harms. Violators are liable to actions brought by any person, entity, or public officer authorised to bring an action under the Cartwright Act.