By Ryan Hanrahan
Reuters’ Mike Scarcella reported that “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,” Scarcella reported. “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.”
Bloomberg Law’s Benjamin Hernandez reported that Johnston “turned aside Deere’s argument Monday that the government’s claims were factually and legally insufficient regarding the company’s power in the ‘aftermarket’ for tractors. The judge also rejected Deere’s challenges to the FTC’s constitutional structure, including arguments related to the Supreme Court’s 1935 decision in Humphrey’s Executor v. United States, as well as the states’ standing and timeliness in bringing the case.”