US FTC sues Dirk over device maintenance restrictions

By Leah Douglas and Jonathan Stemple

(Reuters) – The U.S. Federal Trade Commission on Wednesday charged that agricultural equipment maker Deere illegally paid for maintenance by forcing farmers to rely on its authorized dealer network.

The Joe Biden administration has targeted anti-competitive actions in agriculture, from improving the treatment of chicken farmers by meat processing companies to increasing competition in the seed sector.

The lawsuit alleges that Deere illegally boosted profits by allowing farmers to use its network of authorized dealers for repairs, making it difficult for farmers to use independent mechanics or repair themselves, the agency announced in a press release.

The only software that enables the repair of all Deere devices is produced by the company and is only available to its dealer network, the statement said. As a result, Deere has 100% market share, allowing it to increase prices, he added.

Deere did not immediately respond to a request for comment.

“Unlawful maintenance restrictions can be harmful to farmers, who rely on reasonable and timely maintenance to harvest their crops and earn income,” FTC Chairman Lena Khan said in a statement.

The agency’s lawsuit will see Deere provide the repair tools to equipment owners and independent repair providers, the statement said.

The agency’s investigation into Deere was announced in October.

Illinois and Minnesota have joined the agency as plaintiffs in the lawsuit. A copy of the complaint was not immediately available.

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