Chicago – Attorney General Kwame Raoul, in partnership with the Federal Trade Commission (FTC) and a coalition of five attorneys general, today announced a settlement in their antitrust lawsuit against Deere and Company (Deere), resolving allegations the farm equipment manufacturer used unlawful practices to limit the ability of farmers and independent repair providers to perform repairs on Deere farm equipment.
“For years, Deere refused to give farmers the right to repair equipment they had already purchased, funneling them instead to their network of authorized dealers. This setup increased the price of farming equipment during an increasingly volatile time for America’s farmers,” Raoul said. “I am pleased with today’s settlement, which represents a step in the right direction toward increased marketplace competition and decreased costs for Illinois farmers.”
Historically, farmers have sought to repair their own equipment or relied on local, independent repair providers, which have offered various advantages over authorized Deere dealers including lower costs, better reliability and faster repair times. Yet with the increasing computerization of Deere’s equipment over the past few decades, farmers must now rely on Deere’s interactive software tool called Service ADVISOR, which Deere made available only to its authorized dealers.
By withholding these repair capabilities, Raoul and the coalition alleged in their lawsuit that Deere unlawfully acquired and maintained monopoly power in markets for repair services for its farm equipment. Deere’s practices led to service delays and higher costs for farmers, their complaint further alleged.
Under the terms of today’s settlement, Deere is required to:
The settlement also requires strict reporting and oversight requirements to ensure Deere’s compliance with the stipulated order, which lasts 10 years and may be extended if Deere violates its terms. Farmers and independent repair providers can report concerns with Deere’s compliance with this settlement to Raoul’s Antitrust Bureau at (312) 814-3000 or antitrust@ilag.gov.
Joining Raoul in filing the lawsuit was the FTC and the attorneys general of Arizona, Michigan, Minnesota and Wisconsin.