US FTC sues Deere over equipment repair restrictions

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By Leah Douglas and Jonathan Stempel

(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.

(Reporting by Jonathan Stempel in New York; Editing by Jan Harvey)