US FTC sues Deere for restrictions on equipment repair

By Leah Douglas and Jonathan Stempel

(Reuters) – The U.S. Federal Trade Commission sued farm equipment maker Deere on Wednesday, alleging it illegally increases repair costs by forcing farmers to rely on its network of authorized dealers.

The lawsuit contends that Deere illegally increased its profits by forcing farmers to use its network of authorized dealers for repairs, making it difficult for farmers to hire independent mechanics or perform repairs themselves, a the FTC said in a press release.

The outgoing Biden administration has targeted what it sees as anticompetitive practices in the agricultural sector, from improving meat processing companies’ treatment of chicken farmers to increasing competition in the sector seeds. He also targeted the issue of the right to repair, which affects various sectors, including smartphones and computers.

“Restrictions on illegal repairs can be devastating to 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 only software to repair all Deere equipment is produced by the company, which it makes available only to its dealer network, the FTC said in its press release. As a result, Deere maintained a 100% market share, allowing it to increase prices, he added.

A Deere spokesperson said the company has not yet been notified by the FTC. The company announced Tuesday that it is expanding self-healing options for farmers as part of a pilot program.

The use of authorized dealers may also result in delays in service to farmers that hinder the planting and harvesting of crops, says the complaint filed in the U.S. District Court for the Northern District of Illinois.

Illinois and Minnesota joined the FTC as plaintiffs in the lawsuit.

The lawsuit would see Deere make its repair tools available to equipment owners and independent repairers, the release said.

The agency’s investigation into Deere was made public in October.

(Reporting by Leah Douglas in Washington and Jonathan Stempel in New York; editing by Jan Harvey and Leslie Adler)