Deere & Co., which does business a John Deere, now makes its agricultural equipment with onboard computers known as engine control units (ECUs). While farmers and other owners of Deere equipment have traditionally done their own repairs, the complaint for this class action alleges that the ECUs require the use of software and repair tools that Deere has kept inaccessible to them and to independent repair shops. The complaint alleges that the company thus has a monopoly on the market for repair services for its equipment.
The class for this action is all persons and entities living in the US who, between March 8, 2018 and the present, bought Deere Repair Services for Deere Tractors from John Deere or its authorized dealers or technicians.
Deere is the most prominent company in the large tractor and combine tractor market in North America, with a larger share of the market than its next two competitors combined. But the complaint alleges that the company’s repair services business is “three to six time more profitable than” the one for its equipment sales.
However, the complaint alleges that in the past twenty years or so, equipment has grown more technologically advanced, and that Deere equipment with ECUs now require certain proprietary software and tools to make or complete repairs. “For example,” the complaint alleges, “an owner of a Tractor may be able to replace the transmission on their equipment, but that Tractor will not operate unless proprietary John Deere Software ‘approves’ the newly-installed part.”
Unfortunately, the software and tools are not available to ordinary equipment owners and non-Deere repair services. The complaint claims that Deere only provides it to Deere dealerships who are in turn forbidden to sell it or provide it to anyone else. “By making the Software unavailable,” the complaint alleges, “for all practical purposes, Deere has succeeded in foreclosing competition in the multi-billion-dollar Deere Repair Services Market.”
Deere is thus able to make equipment owners pay high prices for diagnoses of problems and for repairs.
In 2018, the complaint alleges, Deere promised to make the software and tools available by January 2021. But as of the filing of this complaint in August 2022, the complaint alleges that Deere has not kept this promise.
This situation constitutes a tying arrangement, the complaint alleges, that prevents competition. According to the complaint, owners of Deere equipment have had to pay inflated prices for repairs, millions more than they would have paid in an open, competitive market.
Article Type: LawsuitTopic: Antitrust
Most Recent Case Event
Deere Agricultural Equipment Monopoly on Repair Services Complaint
September 26, 2022
Deere & Co., which does business a John Deere, now makes its agricultural equipment with onboard computers known as engine control units (ECUs). While farmers and other owners of Deere equipment have traditionally done their own repairs, the complaint for this class action alleges that the ECUs require the use of software and repair tools that Deere has kept inaccessible to them and to independent repair shops. The complaint alleges that the company thus has a monopoly on the market for repair services for its equipment.
Deere Agricultural Equipment Monopoly on Repair Services ComplaintCase Event History
Deere Agricultural Equipment Monopoly on Repair Services Complaint
September 26, 2022
Deere & Co., which does business a John Deere, now makes its agricultural equipment with onboard computers known as engine control units (ECUs). While farmers and other owners of Deere equipment have traditionally done their own repairs, the complaint for this class action alleges that the ECUs require the use of software and repair tools that Deere has kept inaccessible to them and to independent repair shops. The complaint alleges that the company thus has a monopoly on the market for repair services for its equipment.
Deere Agricultural Equipment Monopoly on Repair Services Complaint