John Deere was accused of illegally restricting farmers’ ability to repair tractors and other equipment in a lawsuit filed by the Federal Trade Commission with two states.
Seth Perlman/AP
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Seth Perlman/AP
Tractor maker John Deere is facing a federal lawsuit that accuses the company of illegally forcing farmers to use only certified dealers to perform critical repairs, boosting its billion-dollar profits.
suit — Submitted on Wednesday by the Federal Trade Commission — along with Illinois and Minnesota — escalates a long-running battle over farmers’ right to repair their farm equipment and parts.
As tractors and combines became increasingly computerized, farmers complained that Deere restricted access to its software and made it difficult, or nearly impossible, for owners to diagnose and resolve problems themselves or with the help of independent mechanics. Instead, farmers must use authorized dealers, who tend to charge higher fees and may take longer.
The lawsuit accuses Deere of withholding access to technology and its best repair tools and maintaining monopoly power over many repairs. Deere also makes additional profits from selling replacement parts, the complaint alleges, as authorized dealers tend to sell expensive Deere-branded parts for repairs rather than generic replacements.
“Unfair repair restrictions can mean farmers face unnecessary delays during tight planting and harvesting periods,” FTC Chair Lina Khan he wrote in a statement. “In rural communities, restrictions can sometimes mean that farmers need to drive hours just to repair their equipment. For those who have long repaired their own equipment, these artificial restrictions can seem particularly ineffective, as tractors sit idle without As farmers and freelancers, mechanics are prevented from using their skills and talents.”
It’s unclear how the issue could proceed when Republicans take control of the Federal Trade Commission after Donald Trump becomes president on Monday. The agency’s two Republican commissioners had voted against prosecuting Deere. One of them, Andrew Ferguson, is Trump’s pick to become the new head of the Federal Trade Commission.
In their dissenting statement, Commissioners Ferguson and… Melissa Holyoake wrote that they welcomed the FTC’s “adoption of the farmer’s case” but made procedural arguments against the lawsuit. They said the timing, just before Trump’s inauguration, gives the issue the “smell of partisan motivation.”
They also wrote that the FTC had not gathered enough evidence to have “any real confidence in our ultimate chance for success” in the litigation — and said the agency was also in ongoing active negotiations to reach a settlement with Deere.
Representatives for Deere & Company did not immediately respond to NPR’s request for comment on Wednesday. Earlier this week, the company said it was expanding options for farmers to repair equipment themselves in a pilot program.
Formerly the Federal Trade Commission Follow up on similar issues related to the right to repair Against motorcycle giant Harley-Davidson and grill maker Weber.