John Deere booth signage is on display at CES 2023 at the Las Vegas Convention Center on January 6, 2023 in Las Vegas, Nevada.
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The Federal Trade Commission has sued an agricultural equipment giant Deere & CompanyThe agency said Wednesday that it has a monopoly on repair services, driving up costs and causing delays for farmers.
The lawsuit alleges that Deere prevented customers from repairing their equipment, including tractors and combines, for decades, forcing them to rely on the company's network of authorized repair providers. A Deere software tool called Service ADVISOR, available only to higher-priced dealerships, is required to fully repair equipment, so farmers and independent repair providers cannot do it themselves, the FTC alleged.
The FTC said authorized dealers often use Deere-branded replacement parts instead of cheaper generics when performing repair work, increasing Deere's profits.
“Illegal repair restrictions can have devastating consequences for farmers who rely on affordable and timely repairs to harvest their crops and earn income,” FTC Chairwoman Lina Khan said in a press release. “Today’s action by the FTC aims to ensure that farmers across America have the freedom to repair their equipment themselves or use repair shops of their choice – reducing costs, preventing ruinous delays and promoting fair competition for independent repair shops.”
The states of Illinois and Minnesota are also plaintiffs in the lawsuit.
The lawsuit seeks to make Service ADVISOR and other necessary repair resources available to Deere customers and independent repair providers. Other manufacturing companies in the trucking and automotive industries provide the necessary information to developers of general repair tools, the FTC said.
Denver Caldwell, vice president of aftermarket and customer support for Deere, said in a statement that it was “extremely disappointing that three FTC commissioners have decided to file a baseless lawsuit on the eve of the transition to a new administration.”
“Our recent discussions with the Commission revealed that the agency still lacked basic information about the industry and John Deere's business practices and confirmed that the agency instead relied on inaccurate information and assumptions,” Caldwell added.
The company said it has “introduced a number of new innovations, tools and resources to equip customers and independent repair technicians with the maintenance and repair needs of our equipment.”
Deere shares fell less than 1% Wednesday afternoon.
The lawsuit comes in the final days of President Joe Biden's term in the White House and Khan's tenure at the FTC, during which the agency has taken an aggressive approach to antitrust law. It is unclear whether President-elect Donald Trump's administration will pursue the lawsuit against Deere.
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