FTC sues John Deere for monopolizing farm-equipment repair market

[BumRushDaShow]

Source: Scripps News

Posted 3:05 PM, Jan 17, 2025


Deere & Co. unfairly forces farmers to visit authorized dealers to repair their equipment, resulting in higher prices than if they could fix it themselves or get help from independent shops, the Federal Trade Commission claims in a federal lawsuit filed Wednesday with the attorneys general of Illinois and Minnesota.

The Moline, Illinois-based manufacturer produces repair software that is available only to its dealers, making it impossible for owners to seek less-costly remedies, according to the lawsuit filed in U.S. District Court in Rockford, Illinois.

The action comes as the FTC has stepped up enforcement actions in the final days of President Joe Biden's administration. Deere & Co. said in a statement that the lawsuit was based on a "flagrant misrepresentation of the facts and fatally flawed legal theories."

The complaint claims that the "unfair steering practice" has boosted Deere's multibillion-dollar profits on agricultural equipment and parts while burdening practitioners "who rely on affordable and timely repairs," FTC Chairperson Lina M. Khan said in a prepared statement.

Read more: https://www.scrippsnews.com/business/company-news/ftc-sues-john-deere-for-monopolizing-farm-equipment-repair-market

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Link to FTC PRESS RELEASE - FTC, States Sue Deere & Company to Protect Farmers from Unfair Corporate Tactics, High Repair Costs

[Bernardo de La Paz]

1. I've read about this. It's a venal kind of lock-in, which requires exploiting some market dominance. . . . nt

[BumRushDaShow]

3. It's been one of the big news stories here in the Philly area

I expect (at least how the news reported it) it boils down to forcing equipment owners to ONLY use the "John Deere"-certified/approved dealers for repair (where they are apparently price-fixing) and that precludes being able to do your own repairs or take the equipment to a miscellaneous repair shop (I expect that they must indicate would void a warranty).

[Bernardo de La Paz]

5. As I understand it, the computer controlling everything would refuse to operate if non-dealer repairs were made. . . nt

[ItsjustMe]

2. Apple was doing the same thing

[SupportSanity]

4. John Deere has made DIY repairs almost impossible for a long time.

I hope they lose big on this.

[Bengus81]

6. Relax Deere....Trump will come to your rescue

As much as he plays the "I love farmers" BS everyone knows he loves mega Corporations more. If Deere wins what's to stop the big three car manufactures from doing the same?