CHICAGO (CN) — John Deere is facing a new federal antitrust lawsuit over its equipment repair practices as of Wednesday, this one filed by an arm of the federal government itself.
The Federal Trade Commission, joined by the attorneys general of Illinois and Minnesota, accuses the Illinois-based farm equipment manufacturer of using a proprietary software tool to bar consumers’ ability to independently repair its products. This forces Deere & Company’s customers to rely on its own network of authorized repair providers, the FTC says.
“Deere’s increasingly sophisticated agricultural equipment requires a software tool to diagnose and repair problems that relate to electronic functions, and only Deere has the information and knowledge to create this essential tool,” the FTC claims in its complaint. “By making this tool available only to Deere dealers, Deere forces farmers to turn to Deere dealers for critical repairs rather than complete the repairs themselves or choose an independent repair provider that may be cheaper, closer, faster or more trusted.”
The FTC names the software tool in question as “Service ADVISOR,” available only to Deere authorized dealers. Courthouse News’ attempt to access information about the tool online led to a complex John Deere account registration process. Deere makes another subscription-based software tool called Customer Service ADVISOR available for purchase online, but there are several different versions tailored to different classes of equipment. Each costs upwards of $1,000 — some over $3,000 — for a one-year license.
The FTC claims it is an inferior tool regardless.
“This tool lacks many of the key functions necessary to enable comprehensive repair,” the FTC writes of the Customer Service ADVISOR in its 37-page complaint.
The FTC and state attorneys general bring two claims against Deere for violations of federal anti-monopoly laws, and two additional claims for violations of Illinois and Minnesota antitrust laws. They also seek a court order “to make available to owners of Deere Large Tractors and Combines and independent repair providers on reasonable and nondiscriminatory terms Full-Function Service ADVISOR and any other repair resource that Deere makes available to its dealers.”
The FTC’s claims echo those raised by Forest River Farms, a North Dakota farming concern, in a separate January 2022 federal class action complaint. Forest River Farms opposed Deere’s integration of onboard computers known as engine control units, or ECUs, into its equipment. It claimed ECUs artificially prevent otherwise knowledgeable mechanics from properly servicing Deere products.
Similar to the FTC, Forest River Farms argued “Deere’s monopolization of the Deere repair services market allows Deere and the dealerships to charge and collect supracompetitive prices for its services every time a piece of equipment requires the software to diagnose or complete a repair.”
Forest River Farms’ suit is still pending in the western division of the North Illinois District Court. At the time that suit was filed, an independent mechanic shop in Channahon, Illinois told Courthouse News that Deere was not the only company which tried to exert similar control over its products’ repair.
“It’s across the board, it’s not just John Deere,” Mike McCaffrey, co-owner of Channahon Tractor, told Courthouse News in 2022. “They all have the same thing, they all have the diagnostic systems you have to buy … or you have to pay their mechanics.”
FTC Chair Lina Khan, in a statement accompanying Wednesday’s filing, called for farmers across the country to be able to repair their own gear or to use their preferred repair services.
“Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” Khan said in a prepared statement. “The FTC’s action today seeks to ensure that farmers 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.”