The Federal Trade Commission (FTC) has sued agricultural equipment company Deere & Company, alleging it holds a monopoly on repair services that raises costs and creates delays for farmers. The lawsuit claims Deere’s tactics force customers to rely on authorized dealers for equipment fixes, limiting their ability to repair their own equipment or use independent repair shops.
Deere’s software tool, Service ADVISOR, is only available to more expensive authorized dealers and necessary to fully fix equipment. This restricts farmers and independent repair providers from doing repairs themselves, forcing them to pay higher prices for parts and services. The FTC alleges that Deere often uses Deere-branded parts instead of less expensive generic ones, further increasing costs.
The lawsuit seeks to make Service ADVISOR and other necessary repair resources available to Deere customers and independent repair providers. In contrast, other manufacturing companies in the trucking and auto industries provide similar information for generic repair tool developers.
Deere’s vice president, Denver Caldwell, disputed the FTC’s claims, stating that the agency lacked basic information about the industry and relied on inaccurate assumptions. However, the company has introduced new innovations to equip customers with the necessary maintenance and repair needs of their equipment. Despite this, Deere shares fell less than 1% following the announcement.
The lawsuit marks the final days of President Joe Biden’s term in office and FTC Chair Lina Khan’s tenure. It remains unclear if the next administration will continue to pursue the suit against Deere.
Source: https://www.cnbc.com/2025/01/15/ftc-sues-deere-over-equipment-repair-costs-for-farmers.html