A John Deere booth sign is on display during CES 2023 at the Las Vegas Convention Center on January 6, 2023 in Las Vegas, Nevada.
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Federal Trade Commission sues agricultural machinery giant Dear & Companyhas a monopoly on repair services, which the agency announced on Wednesday, arguing that it is driving up costs and causing delays for farmers.
The suit alleges that for decades, Deere prevented customers from repairing equipment such as tractors and combines, forcing them to rely on the company’s network of authorized repairers. Deere’s software tool, called “Service ADVISOR,” is more expensive and available only to authorized dealers, but is necessary to fully repair equipment that farmers and independent repairers cannot repair themselves. The FTC argued.
According to the FTC, authorized dealers often use Deere-branded parts instead of cheaper generic parts for repair work, increasing Deere’s profits.
“Unlawful repair restrictions are devastating to farmers who rely on affordable and timely repairs to harvest crops and generate income,” FTC Chair Lina Khan said in a news release. There is a possibility that it will happen.” “Today’s FTC action is designed to give farmers across America the freedom to repair their own equipment or use repair shops of their choice, reducing costs and eliminating potentially devastating The aim is to prevent delays and promote fair competition for independent repair shops.”
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 manufacturers in the trucking and auto industries also provide the necessary information to developers of generic repair tools, the FTC said.
“We are deeply disappointed that three FTC commissioners chose to file a frivolous lawsuit on the eve of the transition to a new administration,” Denver Caldwell, Deere’s vice president of aftermarket and customer support, said in a statement. ” he said.
“Recent discussions with the Commission revealed that the agency continues to lack basic information about the industry and John Deere’s business practices, and that the agency is relying on inaccurate information and assumptions,” Caldwell said. It has been confirmed that there is,” he added.
The company said it has “introduced many new innovations, tools and resources to help our customers and independent repair technicians meet their equipment maintenance and repair needs.”
Deere stock was down less than 1% on Wednesday afternoon.
The lawsuit comes in the final days of President Joe Biden’s White House term and Mr. Khan’s tenure at the FTC, during which time the FTC has taken an aggressive approach to antitrust law. It is unclear whether President-elect Donald Trump’s administration will pursue the case against Mr. Deere.