US Trade Commission sues John Deere over repair monopoly

The U.S. Federal Trade Commission has initiated legal action against agricultural equipment manufacturer John Deere. The allegation: The company is accused of artificially inflating repair costs for farmers by tying them to an exclusive network of authorized dealers, thereby promoting anti-competitive practices. The Biden administration has put the fight against anti-competitive practices in agriculture on its agenda. The aim is not only to improve the situation of poultry farmers with respect to large meat processors but also to promote competition in the seed sector. According to the complaint, John Deere is alleged to have unlawfully increased its profits by practically forcing farmers to handle repairs exclusively through the dealer network. This hinders the use of independent mechanics and the possibility of self-repairs. The only access to relevant repair software has been provided exclusively to dealers by John Deere, allowing the company to maintain a 100 percent market share and raise prices. A statement from John Deere is still pending. FTC Chair Lina Khan stated: "Illegal repair restrictions can be devastating for farmers who rely on cost-effective and timely repairs to harvest their crops and secure their income." The aim of the lawsuit is to make repair tools accessible to farmers and independent service providers as well. The states of Illinois and Minnesota support the lawsuit as co-plaintiffs. Details of the complaint have not yet been released.