Lina Khan’s FTC Is Suing John Deere to Break Its Repair Monopoly

For years John Deere has made it hard for farmers to fix their equipment. Today the Federal Trade Commission announced it’s going to sue to try to stop them. The FTC and the Attorneys General of the states of Illinois and Minnesota are suing John Deere over unfair business practices related to repair.

According to the complaint, Deere has unlawfully restricted farmers from fixing their own farm equipment. Under the scheme, farmers had to return tractors to John Deere-authorized dealerships to make official repairs.

“Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” FTC Chair Lina Khan said in a press release about the lawsuit. “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.”

Legal action against John Deere has been brewing for years. Last Fall, the FTC announced it had begun an investigation into the company over its repair practices. It’s been sued multiple times by farmers their advocates over the issue and has long promised it would make its machines easier to repair. It lied.

The basic scheme is this: newer machines made by John Deere contain advanced computer systems that trip when any kind of work is done. Even if a farmer does a basic repair to a tractor, the computers lock the tractor from working again until an officially licensed repairman flips a software switch.

Farmers have requested one thing for a long time: access to the manuals and tools that would allow them to repair their own equipment in a timely fashion. “Through its limited distribution of its repair tools, Deere has been able to control and limit who can repair its agricultural equipment, allowing Deere to maintain a 100% market share and charge higher prices, via its network of authorized dealers, for all repairs that require the fully functional tool.” the FTC said.

This has driven up the cost of repairs for basic farm equipment, delayed harvests, and caused an explosion in the used farm equipment market as farmers look to buy machines manufactured before John Deere loaded them down with computers. The goal of the lawsuit is to force Deere to give farmers access to the same tools as the authorized repair shops, thereby making it possible for them to repair their own stuff.

News of the lawsuit was greeted with universal acclaim from multiple groups that have been lobbying to force John Deere to make stuff easier to repair.

“Everyone, especially handy people including farmers, should be allowed to fix their own stuff. When farmers can’t access the proprietary software tools they need to diagnose or complete repairs, that means they have to wait for an authorized technician before they can finish their work. The weather doesn’t wait on a dealership’s schedule—a delay could mean the loss of a harvest. Not only might that bankrupt the farmer, it also raises food prices for everyone,” Nathan Proctor, PIRG’s Right to Repair Campaign Director, said in a statement.

“We shouldn’t tolerate companies blocking repair. When you buy something, you should be able to do whatever you want with it,” Proctor added. “The FTC’s enforcement action will help farmers, and everyone else who believes people should be able to fix their stuff.”

The FTC lawsuit joins the long list of aggressive actions the Commission has taken against corporate malfeasance under Khan. The Right to Repair was a key issue in the Biden White House and, through both executive orders and FTC lawsuits, D.C. has been able to shake loose several victories for consumers.