FTC and States Sue John Deere Over Alleged Repair Monopoly

The Deer & Co. John Deere 8R fully autonomous tractor is displayed ahead of the Consumer Electronics Show (CES) in Las Vegas, Nev., on Jan. 4, 2022. Patrick T. FallonAFP via Getty Images

The Federal Trade Commission (FTC), along with attorneys general from Illinois and Minnesota, filed a lawsuit against John Deere manufacturer Deere and Company on Jan. 15, charging the agriculture machinery giant with engaging in practices that allegedly force farmers to rely on its authorized dealers for critical equipment repairs.

According to the FTC’s complaint, these alleged tactics have inflated costs for American farmers and deprived them of the ability to quickly fix the tractors and combines they depend on for planting and harvesting.

The lawsuit alleged that Deere holds monopoly power in certain repair services for its own agricultural equipment, partly because of its exclusive control over a fully functional software repair tool called “Service ADVISOR.”

The FTC alleged that Deere limits distribution of this tool to authorized dealers only, preventing farmers and independent repair shops from making the same range of repairs that official dealers can perform.

An alternative version of the software—Customer Service ADVISOR—is said to be incapable of offering the same level of functionality, creating what the commission describes as an unlawful chokehold on essential farm equipment repairs.

“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 a statement announcing the suit. “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.”

The Commission voted 3–2 in favor of filing, with Commissioners Andrew Ferguson and Melissa Holyoak dissenting. Ferguson, with Holyoak joining the dissenting statement, said he was in favor of “right to repair” legislation, but he wrote that he believed that the lawsuit’s timing and evidentiary basis undermine its credibility.

“Given the timing of this filing, today’s action appears to be one taken in haste to beat [President-elect Donald] Trump into office, and lends to the suit the stench of partisan motivation,“ Ferguson wrote. ”I cannot support Commission conduct that appears to be the result of brazen partisanship. The outgoing Democratic majority’s decision to bring suit mere days before the presidential inauguration does the Commission a disservice.”

It is not yet how the case will proceed when Republicans take control of the FTC after Trump’s inauguration on Jan. 20. Ferguson is Trump’s pick to chair the FTC in his new administration.

Ferguson also pointed to ongoing negotiations between Deere and federal regulators that he contends might yield a quicker resolution.

“The parties are in active negotiations over a fix that, if brought to fruition, could provide meaningful relief to America’s farmers,” he said, arguing that bringing a lawsuit with an “underdeveloped” record risks dragging out the issue and diverting resources from a practical settlement.

The FTC’s lawsuit seeks an injunction and other relief in the U.S. District Court for the Northern District of Illinois that would require Deere to release its fully functional software—Service ADVISOR—and other key repair resources to equipment owners and independent repair providers.

Khan said that the legal action is necessary to counter the alleged “unfair steering” toward Deere’s proprietary network, adding that the agency’s broader work on protecting the right to repair goes back decades.

The company stated on Jan. 14 that it was in the process of expanding self-repair solutions for users of their equipment.

Deere and Company did not respond by publication time to a request from The Epoch Times for comment on the lawsuit.