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.