The FTC will sue Deere over its equipment repair practices, Bloomberg News Reuters reports
(Reuters) – The US Federal Trade Commission has prepared a lawsuit against Deere & Co (NYSE: ) alleging that the company’s farm equipment repair practices violate competition laws, Bloomberg News reported Tuesday, citing people familiar with the matter.
The report also said the FTC is poised to file a case as early as this week, amid concerns that the farm equipment maker has withheld crucial information and diagnostic tools from farmers and independent repair shops.
FTC commissioners haven’t taken a final vote on whether to pursue the case, according to the report.
Deere and the FTC did not immediately respond to Reuters requests for comment.
The investigation was first authorized in 2021 and announced in October in a filing by data analytics firm Hargrove & Associates Inc, which sought to quash an FTC subpoena seeking market data provided to it by members of the Equipment Manufacturers Association.
At the time, a Deere spokesman said the company was cooperating with the FTC.
Hargrove’s filing said the FTC is investigating whether Deere violated Section 5 of the Federal Trade Act, which prohibits unfair or deceptive practices affecting commerce.
The investigation looked into restrictions placed on the “customers’ right” to repair hardware or software they have purchased.
Deere is also facing lawsuits from farmers over the same issue.
In June, Harley-Davidson (NYSE: monopolizes repairs.
