US FTC sues Deere over equipment repair restrictions
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FILE PHOTO: The sign outside a John Deere dealer is seen in Denver May 14, 2015. A weak global agriculture sector weighed heavily on quarterly results posted by Deere & Co on May 22, 2015, but earnings still topped expectations, and the farm equipment mak
By Leah Douglas and Jonathan Stempel
(Reuters) -The U.S. Federal Trade Commission on Wednesday sued farm equipment maker Deere, alleging it illegally drives up repair costs by forcing farmers to rely on its authorized dealer network.
The lawsuit argues Deere has unlawfully boosted profits by requiring farmers to use its network of authorized dealers for repairs, making it difficult for farmers to use independent mechanics or do repairs themselves, the FTC said in a press release.
The outgoing Biden administration has targeted what it sees as anti-competitive practices in agriculture, ranging from improving the treatment of chicken farmers by meat processing companies to increasing competition in the seed sector. It has also targeted the right-to-repair issue, which cuts across various industries, including smartphones and computers.
"Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income," FTC Chair Lina Khan said in the release.
The only software that enables repairs of all Deere equipment is produced by the company, which it only makes available to its dealer network, the FTC said in its statement. As a result, Deere has maintained a 100% market share, allowing it to hike prices, it added.
A spokesperson for Deere said the company had not yet been notified by the FTC. The company on Tuesday said it was expanding self-repair options for farmers in a pilot program.
Reliance on authorized dealers can also cause farmers service delays that impede crop planting and harvesting, said the complaint, which was filed in U.S. District Court for the Northern District of Illinois.
Illinois and Minnesota joined the FTC as plaintiffs in the lawsuit.
The lawsuit would see Deere make its repair tools available to equipment owners and independent repair providers, the release said.
The agency's probe into Deere was made public in October.
(Reporting by Leah Douglas in Washington and Jonathan Stempel in New York; Editing by Jan Harvey and Leslie Adler)
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