FTC is suing Deere over equipment repair costs for farmers

The Federal Trade Commission has sued the agricultural equipment giant Deere & Companyarguing that it maintains a monopoly on repair services that raise costs and create delays for farmers, the group announced Wednesday.

The lawsuit alleges that for decades Deere has limited the ability of customers to repair their equipment, including tractors and combines, forcing them to rely on a network of suppliers the company's authorized repairer. A Deere software tool called “Service ADVISOR”, which is only available to more expensive authorized dealers, is required to fully repair equipment, leaving farmers and independent repair providers able to to do themselves, the FTC said.

The FTC said that authorized dealers often use Deere-branded parts instead of less expensive generic ones for repair jobs, boosting Deere's profits.

“A ban on illegal repairs can be devastating to farmers, who rely on affordable repairs to harvest their crops and earn their income,” FTC Chairwoman Lina Khan said in a press release. the FTC's action today aims to ensure that farmers across America are free to repair their own equipment or use the repair shops of their choice – reducing costs, preventing devastating delays, and promote fair competition for independent repair shops.”

The states of Illinois and Minnesota are also plaintiffs in the lawsuit.

The lawsuit seeks to provide Deere customers and independent repair providers with Service ADVICE and other necessary repair resources. Other manufacturing companies in the trucking and automotive industries provide the information needed for generic repair kit developers, the FTC said.

Deere did not immediately return a request for comment. Its shares fell less than 1% on Wednesday afternoon.

The lawsuit comes in the final days of President Joe Biden's term in the White House and Khan's tenure at the FTC, when the agency has taken an aggressive approach to antitrust. It is not clear whether the administration of President Donald Trump will continue to pursue the case against Deere.