Michigan AG joins lawsuit claiming John Deere created repair monopoly

MGN

BERRIEN COUNTY, Mich. -- Michigan Attorney General Dana Nessel has officially joined the Federal Trade Commission (FTC) and four other state attorneys general in a lawsuit against Deere & Company, accusing the agricultural equipment manufacturer of illegally monopolizing key segments of the agricultural equipment market and engaging in unfair methods of competition.

“Deere has deliberately designed a system that forces Michigan farmers to depend on the company to fix essential equipment,” The Michigan Attorney General said.

“By illegally restricting access to necessary tools and software, Deere drives up costs for farmers and consumers to boost its own profits. Our farmers, who help ensure we have food on our tables, deserve access to affordable and timely repairs. My office will continue working with the FTC and attorneys general around the country to shield farmers from Deere’s unfair and monopolistic practices.”

According to the lawsuit, Deere has restricted farmers and independent repair providers from repairing Deere equipment, forcing farmers to rely on Deere’s authorized dealers for essential repairs.

"For decades, Defendant Deere & Company, a manufacturer of large agricultural equipment including tractors and combines, has throttled the ability of farmers and independent repair providers to repair Deere equipment, leaving farmers wholly reliant upon Deere’s network of authorized dealers for many key repairs," the lawsuit states. 

"Deere’s increasingly sophisticated agricultural equipment requires a software tool to diagnose and repair problems that relate to electronic functions, and only Deere has the information and knowledge to create this essential tool. By making this tool available only to Deere dealers, Deere forces farmers to turn to Deere dealers for critical repairs rather than complete the repairs themselves or choose an independent repair provider that may be cheaper, closer, faster, or more trusted."

The lawsuit alleges these unlawful practices inflate repair costs and cause unnecessary delays for farmers.

"Deere’s actions violate the Michigan Antitrust Reform Act by maintaining monopoly power over Michigan’s restricted repair market, forcing farmers to pay artificially high prices," the Attorney General said. "The lawsuit seeks to immediately halt Deere’s alleged unlawful business practices."

Attorneys general from Arizona, Minnesota, Illinois, and Wisconsin are also members of the lawsuit which was originally file

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