Deere & Co. is the largest seller of agricultural equipment in the US. But the complaint for this antitrust class action alleges that Deere has monopolized the market for repair services for the machinery it sells. It does this, the complaint alleges, by refusing to make available the software and tools necessary to complete repairs of John Deere equipment.
The class for this action is all persons and entities living in the US who, between January 10, 2018 and the present, bought Deere Repair Services for Deere tractors from John Deere or its authorized dealers or technicians.
In former times, when farm equipment like John Deere’s was mechanical, farmers could make their own repairs of equipment or take it to an independent repair shop.
Unfortunately, the complaint alleges, John Deere equipment now contains central computers known as engine control units (ECUs), so that Deere software and tools are required to make or complete repairs. The complaint claims that “even if the owner of a Tractor is capable of replacing a part or component on their Tractor, it will still not operate unless the Software ‘approves’ the newly-installed part and clears any error codes.”
The complaint quotes Deere’s director of industry relations as admitting in 2017 that “95% to 98% of tractor repairs do not require access to software,” yet technicians are still required to gain approval for the repairs via the software.
Deere makes the software and tools available only to its authorized dealers, the complaint claims, and does not permit them to sell them to others.
According to the complaint, “[i]n 2018, after experiencing public pressure and in order to stave off potential action from lawmakers, a trade group representing Deere made a highly-publicized promise to make the necessary Software and tools available by January 2021.” But as of the filing of this complaint, more than a year after this date, Deere still has not made it available.
Why does Deere care so much about monopolizing repair services? The complaint alleges the company makes far more money on repairs than it does on sales.
Repairs through Deere’s authorized dealers are “expensive and inconvenient,” the complaint claims, and Deere has made the situation even worse through its consolidation of dealerships. The complaint charges that Deere’s limiting of the repair market has created a tying arrangement, where purchase of Deere repair services is tied to the purchase of the original equipment.
“Through its monopolistic practices and its anticompetitive contractual restrictions imposed on its Dealerships,” the complaint alleges, “Deere has forced farmers to pay supra-competitive prices for Deere Repair Services.”
Article Type: LawsuitTopic: Antitrust
Most Recent Case Event
John Deere Monopoly on Repair Market Antitrust Complaint
February 28, 2022
Deere & Co. is the largest seller of agricultural equipment in the US. But the complaint for this antitrust class action alleges that Deere has monopolized the market for repair services for the machinery it sells. It does this, the complaint alleges, by refusing to make available the software and tools necessary to complete repairs of John Deere equipment.
John Deere Monopoly on Repair Market Antitrust ComplaintCase Event History
John Deere Monopoly on Repair Market Antitrust Complaint
February 28, 2022
Deere & Co. is the largest seller of agricultural equipment in the US. But the complaint for this antitrust class action alleges that Deere has monopolized the market for repair services for the machinery it sells. It does this, the complaint alleges, by refusing to make available the software and tools necessary to complete repairs of John Deere equipment.
John Deere Monopoly on Repair Market Antitrust Complaint