The Federal Trade Commission (FTC) has filed a lawsuit against agricultural equipment manufacturer Deere & Company, alleging that the company holds a monopoly over repair services, resulting in higher costs and delays for farmers, the agency announced on Wednesday.
According to the lawsuit, Deere has restricted customers’ ability to repair their equipment, such as tractors and combines, forcing them to rely exclusively on the company’s authorized repair network.
The FTC claims that Deere’s proprietary software tool, “Service ADVISOR,” is essential for fully repairing equipment but is only accessible to the company’s more expensive authorized dealers. This restriction, the FTC alleges, prevents farmers and independent repair shops from completing repairs on their own.
The FTC further stated that authorized dealers often use Deere-branded parts instead of cheaper generic alternatives, which contributes to increased repair costs and bolsters Deere’s profits.
“Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” said FTC Chair Lina Khan in a press release.
“The FTC’s action today seeks to ensure that farmers across America are free to repair their own equipment or use repair shops of their choice—lowering costs, preventing ruinous delays, and promoting fair competition for independent repair shops.” The lawsuit also lists Illinois and Minnesota as co-plaintiffs.
The legal action aims to compel Deere to make tools like Service ADVISOR and other necessary repair resources accessible to customers and independent repair providers.
The FTC pointed out that manufacturers in the trucking and automotive industries already provide the required information for third-party tool developers, which enables broader access to repairs.
In response to the lawsuit, Denver Caldwell, Deere’s vice president of aftermarket and customer support, expressed disappointment. “It is extremely disappointing that three Commissioners of the FTC chose to file a meritless lawsuit on the eve of the transition to a new Administration,” he said in a statement.
“Our recent discussions with the Commission have revealed that the agency still lacked basic information about the industry and John Deere’s business practices and confirmed that the agency was instead relying on inaccurate information and assumptions,” Caldwell added.
The company also stated that 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.” On Wednesday afternoon, Deere’s shares experienced a slight decline, falling less than 1%.
The lawsuit comes during the final days of President Joe Biden’s presidency and Khan’s leadership at the FTC, a period marked by an aggressive approach to antitrust issues. However, it remains uncertain whether President-elect Donald Trump’s administration will continue to pursue the case against Deere.