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US FTC sues Deere over equipment repair restrictions
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US FTC sues Deere over equipment repair restrictions
Jan 15, 2025 8:09 AM

Jan 15 (Reuters) - The U.S. Federal Trade Commission on

Wednesday sued farm equipment maker Deere, alleging it

illegally drives up repair costs by forcing farmers to rely on

its authorized dealer network.

The administration of Joe Biden has targeted what it sees as

anti-competitive practices in agriculture, ranging from

improving the treatment of chicken farmers by meat processing

companies to increasing competition in the seed sector.

The lawsuit argues Deere has unlawfully boosted its profits

by requiring farmers to use its network of authorized dealers

for repairs, making it difficult for farmers to use independent

mechanics or do repairs themselves, the agency said in a press

release.

The only software that enables repairs of all Deere

equipment is produced by the company, which it only makes

available to its dealer network, the release said. As a result

Deere has maintained a 100% market share, allowing it to hike

prices, it added.

Deere did not immediately respond to a request for comment.

"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 the release.

The agency suit would see Deere make its repair tools

available to equipment owners and independent repair providers,

the release said.

The agency's probe into Deere was made public in October.

Illinois and Minnesota joined the agency as plaintiffs in

the lawsuit. A copy of the complaint was not immediately

available.

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