State Antitrust Enforcement Roundup: New Laws; New Potential Legislation; and New (and Broader) Areas of Focus

In this blog post, authors John Carroll, Jordan Grushkin, Jared Nagley, Malika Levarlet, and T.J. Benedict (Sheppard Mullin) provide an overview of the growing trend among U.S. states to adopt or expand antitrust laws, particularly focusing on transaction oversight. Many states continue to direct scrutiny toward the healthcare sector, as seen in New York’s proposed regulations requiring pre-closing filings for a wide range of health-related transactions. However, the scope of these developments is broadening, both in terms of industry and geography, with states like Arkansas, Texas, Utah, and West Virginia taking steps to significantly expand their antitrust frameworks.

A notable example is Arkansas’s newly enacted HB 1150, signed into law on April 16, 2025, which prohibits pharmacy benefit managers (PBMs) from owning pharmacies. Effective January 1, 2026, this first-of-its-kind legislation bars PBMs from holding direct or indirect interests in pharmacy retail operations. This move reflects a growing state-level push to address vertical integration concerns and potential conflicts of interest in the healthcare and pharmaceutical sectors.

Meanwhile, California is considering sweeping reforms to its antitrust laws following recommendations by the California Law Review Commission (CLRC). The CLRC suggests broad revisions to the Cartwright Act, including the creation of a standalone state merger control regime. Among its proposals is a reduced standard for challenging transactions, making it easier for the state to oppose deals independently of federal authorities. Additionally, Washington state has become the first to enact a general premerger notification law, applicable beyond specific sectors. Similar proposals are under review in several other jurisdictions, including Colorado, the District of Columbia, Hawaii, Nevada, Utah, and West Virginia…

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