In this article, the Federal Trade Commission has filed a lawsuit against Deere & Company, a major agricultural equipment company, alleging that it maintains a monopoly on repair services. The agency claims that this monopoly leads to increased costs and delays for farmers. The lawsuit asserts that Deere has impeded customers’ ability to repair their equipment, such as tractors and combines, by requiring them to use the company’s authorized repair providers. The FTC alleges that a Deere software tool called “Service ADVISOR,” which is exclusive to more expensive authorized dealers, is essential for complete equipment repairs, leaving farmers and independent repair providers unable to perform the repairs themselves.
According to the FTC, authorized dealers often use Deere-branded parts instead of more affordable generic ones for repair work, contributing to Deere’s profits. FTC Chair Lina Khan stated that restrictions on repairs can be harmful to farmers who depend on cost-effective and timely repairs to harvest their crops and earn income. The lawsuit, which also involves the states of Illinois and Minnesota as plaintiffs, aims to make Service ADVISOR and other essential repair resources accessible to Deere customers and independent repair providers.
Deere’s vice president of aftermarket and customer support, Denver Caldwell, expressed disappointment in the FTC’s lawsuit, criticizing it as baseless and lacking industry knowledge. Caldwell mentioned that the company has introduced new innovations, tools, and resources to assist customers and independent repair technicians with equipment maintenance and repair needs. Deere’s shares experienced a slight decrease following the announcement of the lawsuit.
The lawsuit was filed towards the end of President Joe Biden’s term and during Lina Khan’s tenure at the FTC, known for its aggressive stance on antitrust issues. It remains uncertain whether the incoming administration under President-elect Donald Trump will continue to pursue the case against Deere.
