CHICAGO, ILL – John Deere’s practices to restrict farmer and ranchers from the ability to seek repairs for farm equipment including tractors have unfairly driven up equipment repair costs, the Federal Trade Commission (FTC) and attorneys general in Minnesota and Illinois alleged in a new federal antitrust lawsuit filed Wednesday in Illinois.
The lawsuit filed in the U.S. District Court for the Northern District of Illinois, seeks to stop what the FTC said is “anticompetitive conduct” on the part of John Deere.
The lawsuit asks the court to order Deere to make available to owners of Deere tractors and combines, as well as independent repair shops, access to its “fully functional Service ADVISOR repair tool and any other repair resources available to authorized dealers.”
The FTC also asks the court for a permanent injunction against Deere.
The Biden administration has been investigating John Deere’s practices, after agriculture groups in March 2022 filed a complaint with the FTC.
Those groups, including the National Farmers Union and state-level farmers unions along with the U.S. Public Interest Research Group (PIRG), alleged Deere’s practice of withholding diagnostic software and other equipment from farmers and ranchers violated the Sherman Act.
Jake Lieb with his John Deere equipment at his farm near Monticello, Illinois.
(Photo by Darrell Hoemann, Investigate Midwest)
“The FTC’s complaint alleges that, for decades, Deere’s unlawful practices have limited the ability of farmers and ranchers and independent repair providers to repair Deere equipment, forcing farmers and ranchers to instead rely on Deere’s network of authorized dealers for necessary repairs,” the commission said in a news release.
“This unfair steering practice has boosted Deere’s multi-billion-dollar profits on agricultural equipment and parts, growing its repair parts business while burdening farmers and ranchers with higher repair costs.”
FTC Chairman Lina M. Khan said in a press statement that “illegal repair restrictions” can be “devastating for farmers” who rely on “affordable and timely” repairs.
“The FTC’s action today seeks to ensure that farmers and ranchers 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,” Khan said.
The FTC’s action comes in addition to several other antitrust lawsuits filed by farmers and consolidated in the same court. The new lawsuit alleges Deere has created a monopoly by restricting who can repair its equipment.
By creating these restrictions, Deere has “unlawfully acquired and maintained monopoly power” in the market for certain repair services for Deere agricultural equipment, according to the FTC complaint.
“Through its limited distribution of its repair tools, Deere has been able to control and limit who can repair its agricultural equipment, allowing Deere to maintain a 100% market share and charge higher prices, via its network of authorized dealers, for all repairs that require the fully functional tool,” FTC said in a news release.
“Deere’s repair restrictions allow it to reap additional profits through parts sales, as its authorized network of dealers almost always use expensive Deere-branded parts in their repairs in lieu of generic parts. Despite increasing public pressure to give farmers and ranchers the right to repair their own equipment, including state legislative action, Deere continues to unlawfully withhold a fully functional repair tool from equipment owners.”
