LAS VEGAS (AP) — The Federal Trade Commission has sued agricultural equipment giant Deere & Company, alleging that it has a monopoly on repair services for farmers, which has raised costs and created delays.
The lawsuit, announced on Wednesday, claims that Deere has restricted customers’ ability to repair their equipment, including tractors and combines, and forced them to rely on the company’s network of authorized repair providers. The company’s software tool, called “Service ADVISOR,” which is only available to more expensive authorized dealers, is necessary to fully fix equipment, making it difficult for farmers and independent repair providers to do it themselves.
The FTC alleges that authorized dealers often use Deere-branded parts instead of less expensive generic ones for repair jobs, adding to the company’s profits.
“Legal 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. “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 states of Illinois and Minnesota are also plaintiffs in the lawsuit, which seeks to make Service ADVISOR and other necessary repair resources available to Deere customers and independent repair providers. The lawsuit also alleges that Deere’s actions have stifled competition in the repair industry.
Deere did not immediately return a request for comment on the lawsuit. Its shares fell less than 1% on Wednesday afternoon.
