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The BASED Act, introduced in the California legislature as SB 1074 by Senator Scott Wiener, proposes a direct limit on how dominant digital companies can favor their own offerings. At its core the legislation would forbid platforms meeting two objective thresholds—market capitalization greater than $1 trillion and serving 100 million or more monthly users in the U.S.—from privileging their own products on their own services. Observers from across the tech ecosystem quickly weighed in: coverage of the bill appeared in outlets such as KQED (reported Mar 19, 2026; updated Mar 23, 2026). The text frames self-preferencing as a specific form of gatekeeping in online markets.
Supporters argue the measure is narrowly targeted and designed to restore competitive conditions rather than punish success. Proponents say it would stop entrenched platforms from using distribution, search, or data control to steer users toward in-house options. Advocates emphasize that the bill’s scope focuses on the very largest players and includes space for legitimate pro-competitive conduct. By design this is intended to encourage startups and independent developers to compete on product quality instead of having to outmaneuver algorithmic or policy biases on platforms they depend on.
What the bill would prohibit and how it is scoped
Under SB 1074 the central prohibition is simple but strict: platforms that meet the thresholds cannot favor their own goods or services in ways that disadvantage rivals. The measure targets a narrow universe of companies determined by clear, numeric criteria—$1 trillion market cap and 100 million monthly U.S. users—so smaller firms are unaffected. The bill also contemplates a legal mechanism for defending conduct that is demonstrably pro-competitive, preserving room for innovation and ordinary product improvements. That balance aims to stop deliberate gatekeeping while avoiding a blanket ban on platform experimentation.
Who is backing the legislation and why
Founders and business leaders
A diverse group of founders and investors publicly supported the bill, arguing it would level distribution channels for startups. Investors and operators including Kim-Mai Cutler of Initialized Capital praised the targeted approach that forces competition on product merit rather than on access to a skewed distribution stack. Startup founders such as Shane Gill (AltStore) pointed to European rules that opened the door to alternative app stores as evidence that changing platform rules creates new commercial pathways. Executives like Marvin von Hagen (Poke AI) and Jeremy Stoppelman (Yelp) framed the policy as a remedy to closed ecosystems that can block rivals or privilege their own AI and services, while privacy-focused companies—DuckDuckGo, Proton, Disconnect—emphasized consumer choice and the ability to reach users without artificial barriers.
Open markets advocates and legal voices
Advocacy groups and antitrust experts also rallied behind SB 1074. Writers and campaigners such as Cory Doctorow warned about the risk of private entities becoming de facto regulators of the internet if public policy does not act. The bill drew praise from Jonathan Kanter, who served as Assistant Attorney General, US Department of Justice Antitrust Division (2026-2026), framing the proposal as fitting a long tradition of state-level competition leadership. Organizations promoting economic fairness and digital rights—from TechEquity Action to the Open Markets Institute and Fight for the Future—argued the legislation would protect consumers, small businesses, and workers from the harms of concentrated platform power.
Practical examples and the legal backdrop
Supporters pointed to concrete marketplace behaviors the bill would address. Critics of large platforms have highlighted cases such as the Apple App Store’s commission structure and limits on alternative distribution; the AltStore example from Europe shows how regulatory changes can allow new storefronts. Observers have also noted Google’s increased integration of paid results into search and even AI-generated overviews, Meta’s alleged disadvantageous treatment of competing apps, and Amazon’s scrutiny for copying products and downranking third-party sellers. Those concerns are grounded in litigation and enforcement: courts have scrutinized App Store policies, the Federal Trade Commission and 17 state attorneys general brought action against Amazon in 2026, and in 2026 a federal judge found Google to hold monopoly power in certain search-related markets.
Implications and political realities
If enacted, the BASED Act would force platform operators to change product placement, search ranking, and integration practices that currently benefit their own services. Proponents contend this would broaden consumer choice, lower barriers for challengers, and drive innovation. Yet political headwinds exist: the proposal aligns Senator Wiener with influential tech figures such as Garry Tan, and some critics note a complicated relationship between state leaders and Silicon Valley donors. Senator Wiener previously pursued regulatory initiatives in 2026 that the governor rejected, underscoring that passage is not guaranteed. Still, the debate over SB 1074 crystallizes an ongoing question: whether law should more aggressively constrain digital gatekeepers to preserve open markets and consumer sovereignty.