Agriculture equipment giant Deere must face a lawsuit by the U.S. Federal Trade Commission accusing the company of forcing farmers to use its authorized dealer network and driving up their costs for parts and repairs, a U.S. judge has ruled.
U.S. District Judge Iain Johnston in the federal court in Rockford, Illinois on Monday ruled for now to reject Deere’s effort to end the lawsuit, which was filed at the end of Democratic President Joe Biden’s administration in January.
The lawsuit alleges Deere is violating federal antitrust law by controlling too tightly where and how farmers can get their equipment repaired, allowing the Illinois-based company to charge artificially higher prices. The FTC was joined in its lawsuit by Michigan, Wisconsin and three other U.S. states.
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Deere did not immediately respond to a request for comment, and the FTC declined to comment. Deere has denied any wrongdoing.
Ruling adds to legal woes
The ruling adds to Deere’s legal woes over repair services. Johnson ruled in 2023 that the company must face similar claims from crop farms and farmers that it illegally restricted maintenance and repair services through the use of authorized dealers.
The FTC and states, like the private plaintiffs, contend that Deere is abusing its market power, allowing the company to control prices and minimize competition.
Deere is blocking farmers from acquiring the “tools and information necessary to repair their equipment in a timely and cost-effective manner,” the FTC had said in a court filing in April.
‘No basis in law’
Deere countered that it does not compete in the market for repair services. The government plaintiffs filed their lawsuit “with two vague federal antitrust claims that hide the ball and have no basis in law,” Deere told the court.
The company also challenged the lawfulness of the structure of the FTC, an independent, bipartisan board that enforces antitrust and consumer protection laws. Deere alleged that restrictions against removing FTC commissioners illegally bar the president from exercising lawful oversight.
Johnston said Deere failed to show how it was harmed by the FTC’s removal procedures.
