The Federal Trade Commission has filed a lawsuit against Deere & Company, a major agricultural equipment manufacturer, alleging that the company maintains a monopoly on repair services. The lawsuit claims that this monopoly leads to increased costs and delays for farmers. Deere is accused of impeding customers’ ability to repair their equipment, such as tractors and combines, by requiring them to use the company’s authorized repair providers. The FTC alleges that a software tool called “Service ADVISOR,” which is exclusive to more expensive authorized dealers, is essential for complete equipment repairs, preventing farmers and independent repair providers from performing the repairs themselves.
According to the FTC, authorized dealers often use Deere-branded parts instead of more affordable generic ones for repair work, contributing to Deere’s profits. FTC Chair Lina Khan stated that restrictions on repairs can have severe consequences for farmers who depend on cost-effective and timely repairs to harvest their crops and sustain their livelihoods. The lawsuit, which includes the states of Illinois and Minnesota as plaintiffs, aims to make Service ADVISOR and other essential repair resources accessible to Deere customers and independent repair providers.
Deere’s vice president of aftermarket and customer support, Denver Caldwell, expressed disappointment in the FTC’s lawsuit, criticizing it as baseless and timed just before a new administration takes over. Caldwell mentioned that recent discussions with the Commission revealed a lack of industry knowledge and inaccurate assumptions on the agency’s part. Deere emphasized that it has introduced various innovations, tools, and resources to assist customers and independent repair technicians with equipment maintenance and repair needs.
Deere’s stock experienced a slight decline following the announcement of the lawsuit. The legal action occurs as President Joe Biden’s term nears its end and during a period of aggressive antitrust enforcement by the FTC under Chair Lina Khan. It remains uncertain whether the incoming administration will continue to pursue the case against Deere.
