FTC Sues Deere Over Monopoly on Agricultural Equipment Repairs

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FTC Sues Deere Over Monopoly on Agricultural Equipment Repairs
DEERE & COMPANYFEDERAL TRADE COMMISSIONMONOPOLY
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The Federal Trade Commission (FTC) alleges that Deere & Company has used anti-competitive practices to maintain a monopoly over agricultural equipment repairs, forcing farmers to rely on expensive authorized dealers and hindering independent repair providers.

The Federal Trade Commission (FTC) has filed a lawsuit against agricultural equipment giant Deere & Company , alleging the company maintains a monopoly over repair services. The FTC contends that Deere's practices have systematically restricted customers' ability to repair their own equipment, including tractors and combines, forcing them into reliance on Deere's authorized dealer network.

A key element of the lawsuit is Deere's proprietary software tool, 'Service ADVISOR,' which is exclusively accessible to higher-tier authorized dealers. The FTC asserts that 'Service ADVISOR' is essential for comprehensive equipment repairs, effectively barring farmers and independent repair providers from performing such tasks themselves. Furthermore, the FTC claims that authorized dealers frequently utilize Deere-branded parts, often more expensive than generic alternatives, for repair work, thereby bolstering Deere's profits. The agency argues that these 'illegal repair restrictions' inflict significant harm on farmers who depend on affordable and timely repairs to maintain their agricultural operations and ensure income stability. FTC Chair Lina Khan stated in a news release, 'Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income.' The lawsuit aims to compel Deere to make 'Service ADVISOR' and other critical repair resources accessible to all Deere customers and independent repair providers. The FTC points to other manufacturers in the trucking and automotive sectors who readily provide necessary information for generic repair tool developers, highlighting a disparity in Deere's approach.This lawsuit emerges during the final days of President Joe Biden's administration and Chair Khan's tenure at the FTC, which has exhibited a robust stance against antitrust practices. Whether the incoming Trump administration will continue to pursue this legal action against Deere remains uncertain

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DEERE & COMPANY FEDERAL TRADE COMMISSION MONOPOLY AGRICULTURAL EQUIPMENT REPAIRS FARMERS ANTITRUST

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