Deere faces FTC allegations of monopolizing equipment repair, driving up costs for farmers.

• Deere & Company is being sued by the Federal Trade Commission for allegedly having a monopoly on agricultural equipment repair services.
• The company's tactics made it necessary for customers to depend on authorized dealers for equipment repairs, according to the FTC.
• The lawsuit says the arrangement drives up costs and repair times for farmers.

The Federal Trade Commission has accused agricultural equipment giant of having a monopoly on repair services, which increases costs and causes delays for farmers, the agency announced on Wednesday.

The lawsuit claims that Deere has been preventing customers from repairing their equipment, such as tractors and combines, by limiting access to the necessary tools and resources. Specifically, the FTC alleges that Deere's "Service ADVISOR" software tool, which is only available to authorized dealers, is necessary to fully repair equipment, making it difficult for farmers and independent repair providers to fix their machines on their own.

Deere's profits are boosted when authorized dealers opt for Deere-branded parts over cheaper generic alternatives during repair jobs.

""Farmers face devastating consequences due to illegal repair restrictions, which hinder their ability to harvest their crops and earn their income. The FTC's action aims to ensure that farmers have the freedom to repair their equipment or use repair shops of their choice, thereby reducing costs, preventing delays, and promoting fair competition for independent repair shops," said FTC Chair Lina Khan in a news release."

The states of Illinois and Minnesota are also plaintiffs in the lawsuit.

The lawsuit aims to provide Deere customers and independent repair providers with access to Service ADVISOR and other necessary repair resources. In contrast to other manufacturing companies in the trucking and auto industries, Deere does not provide the required information for generic repair tool developers, the FTC stated.

On Wednesday afternoon, Deere's shares dropped less than 1%, but the company did not respond promptly to a request for comment.

The lawsuit against Deere is filed in the last days of President Joe Biden's term and Khan's tenure at the FTC, with the agency taking a tough stance on antitrust. It is uncertain if President-elect Donald Trump's administration will continue to pursue the lawsuit.