FTC sues Deere & Co. for monopolizing farm-equipment repair market Deere & Co. unfairly forces farmers to visit authorized dealers to repair their equipment, resulting in higher prices than if they could fix it themselves or get help from independent shops, the Federal Trade Commission claims in a federal lawsuit filed Wednesday with the attorneys general of Illinois and Minnesota.
With increased computerization in the past few decades, Deere, the dominant industry player, made its high-tech repair tool available only to authorized dealers, who invariably eschew generic parts for higher-priced Deere parts, according to the FTC.
The complaint claims that the “unfair steering practice” has boosted Deere's multibillion-dollar profits on agricultural equipment and parts while burdening practitioners "who rely on affordable and timely repairs,” FTC Chairperson Lina M. Khan said in a prepared statement.
Khan said farmers should be "free to repair their own equipment or use repair shops of their choice — lowering costs, preventing ruinous delays, and promoting fair competition.”.
The Moline, Illinois-based manufacturer produces repair software that is available only to its dealers, making it impossible for owners to seek less-costly remedies, according to the lawsuit filed in U.S. District Court in Rockford, Illinois.
