Independent automotive aftermarket also seeks OEM repair data to level the playing field with dealership service and repair centers
Lansing, Mich.—Michigan Attorney General Dana Nessel has joined the Federal Trade Commission (FTC) and four other state attorneys general in a lawsuit against Deere & Company (Deere), accusing the agricultural equipment manufacturer of unlawfully monopolizing key segments of the agricultural equipment market and engaging in unfair methods of competition.
“Deere has deliberately designed a system that forces Michigan farmers to depend on the company to fix essential equipment,” Nessel said. “By illegally restricting access to necessary tools and software, Deere drives up costs for farmers and consumers to boost its own profits. My office will continue working with the FTC and attorneys general around the country to shield farmers from Deere’s unfair and monopolistic practices.”
Similarly, the independent automotive aftermarket also seeks OEM repair data to level the playing field with dealership service and repair centers. Aaron Lowe, who was senior vice president of Regulatory and Government Affairs for the Auto Care Association, said, “[Automakers want] to decide which independents are repairing the vehicles — and what parts they’re using. They make a lot of their money by selling parts, and if they control the repair market — who gets the information — then they can control the entire aftermarket supply chain from a parts perspective. That’s their end game.
“The entire aftermarket has a huge stake in this.”
The Michigan lawsuit alleges that Deere has restricted farmers and independent repair providers (IRPs) from repairing Deere equipment, forcing farmers to rely on Deere’s authorized dealers for essential repairs. Deere’s agricultural equipment requires specialized software for diagnosing and repairing electronic issues, and the company controls access to the tool.
By limiting its availability to authorized dealers, the lawsuit alleges Deere forces farmers to use its services, even when an IRP could provide a faster, more affordable, or more trusted alternative. The lawsuit alleges these unlawful practices inflate repair costs and cause unnecessary delays for farmers.
Attorney General Nessel alleges Deere’s actions violate the Michigan Antitrust Reform Act by maintaining monopoly power over Michigan’s restricted repair market, forcing farmers to pay artificially high prices. The lawsuit seeks to immediately halt Deere’s alleged unlawful business practices.
Joining Attorney General Nessel and the FTC in filing this lawsuit (PDF) are the attorneys general from Arizona, Minnesota, Illinois and Wisconsin. The FTC, Illinois, and Minnesota originally filed the lawsuit against Deere last month.
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