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America January 15, 2025 4 mins read

FTC Sues John Deere Over Repair Monopoly Allegations

America ı By Rochdi Rais

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The Federal Trade Commission (FTC) slapped John Deere with a repair monopoly lawsuit in Illinois federal court on Wednesday, adding to class actions accusing the company of illegally withholding access to critical repair tools from farmers. This lawsuit is filed even as Deere faces mounting public pressure and a consolidated group of proposed class actions.

The FTC's suit, joined by the attorneys general for Illinois and Minnesota, comes amid a divisive split within the commission. The agency's two Republican members, soon to hold a majority, dissented in a 3-2 vote to bring the complaint. Incoming FTC Chairman Andrew Ferguson criticized the lawsuit as premature, suggesting that ongoing settlement negotiations with Deere were still in play.

Filed in the Northern District of Illinois, the FTC's complaint alleges that Deere has forced farmers, who depend on its agricultural equipment, to use only authorized dealers for repairs. This is done through a software diagnostic tool that only dealers can access. The lawsuit follows the FTC’s disclosure in October that it was investigating Deere’s right-to-repair policies.

"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 complaint states. "Deere's unlawful business practices have inflated farmers' repair costs and degraded their ability to obtain timely repairs, which is especially critical in times of planting and harvesting."

This legal action follows a series of class actions filed by farmers, which were consolidated in the same federal courthouse in 2022. In 2023, U.S. District Judge Iain D. Johnston denied Deere’s motion for judgment on the pleadings, ruling that the plaintiffs had sufficiently pled a monopoly. The case is currently in discovery.

The FTC and state attorneys general emphasize the importance of timely, cost-effective repairs in the agricultural sector, where specific tasks need to be completed during narrow windows in the planting and harvesting seasons. In rural areas, accessibility is crucial, but Deere's repair monopoly forces farmers to either transport equipment long distances or incur additional charges for on-site repairs by dealers.

"By choosing whom to empower with a Fully Functional Repair Tool – only Deere dealers – Deere has excluded other providers of repair services from offering restricted repairs," the complaint reads. "As a result of Deere's exercise of monopoly power, Deere dealers collectively have a 100% share of restricted repairs."

In his written dissent, Republican Commissioner Andrew Ferguson expressed support for farmers and the right-to-repair movement but criticized the FTC’s timing. Ferguson contended that negotiations were still ongoing and argued that filing the lawsuit now seemed politically motivated.

"Given the timing of this filing, today's action appears to be one taken in haste to beat President Trump into office, and lends to the suit the stench of partisan motivation," Ferguson said.

John Deere did not immediately respond to a request for comment.

The case is seen as a continuation of the FTC’s efforts to address repair restrictions, especially following its 2021 report on repair practices in various industries, including mobile phones and automobiles. The commission has also taken action against other manufacturers, such as Harley-Davidson, Weber, and Westinghouse, for similar repair restrictions.

FTC Chair Lina Khan, in a statement, emphasized the importance of tackling illegal repair restrictions, particularly for farmers.

"Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income," Khan said. "The FTC's action today seeks to ensure that farmers across America are free to repair their own equipment or use repair shops of their choice – lowering costs, preventing ruinous delays, and promoting fair competition for independent repair shops."

The case is Federal Trade Commission et al v. Deere & Company, case number 3:25-cv-50017, in the U.S. District Court for the Northern District of Illinois.

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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