Just days before Donald Trump moved back to 1600 Pennsylvania Avenue, in a heavily redacted complaint, the U.S. Federal Trade Commission sued farm equipment manufacturer John Deere, claiming it illegally boosts profits by requiring farmers to use its service network to repair broken down machines:

“Farmers are forced to turn to Deere dealers for repairs that they would do themselves or take to an IRP but for Deere’s restrictions. As a result, Deere has acquired and maintained monopoly power in a relevant market for the provision of repair services that require the use of a fully functional repair tool. Through its limited distribution of the repair tool, Deere controls entry into, and limits output in, the provision of such services. As a consequence, Deere’s dealers are able to maintain a 100% market share and charge supracompetitive prices for restricted repairs, and Deere itself reaps additional profits through parts sales.”

The lawsuit – joined by the state attorneys general of Illinois and Minnesota – asks for a permanent injunction of Deere’s current practices regarding repair software and a requirement that Deere makes fully functional repair software available to farmers and independent mechanics.

The FTC complaint was a long time coming. See here, here, and here.  Ask any farmer if they believe John Deere has been dealing off the top of the deck when it comes to software repair tools and you’ll get an earful.

Nonetheless, it wasn’t a slam dunk at the FTC, which voted 3-2 to move forward with the complaint with both Republican commissioners – Andrew Ferguson and Melissa Holyoka – dissenting.

While Ferguson acknowledged that “right to repair one’s own equipment matters a great deal,” he wrote he was dissenting on “procedural grounds” which amounted to a partisan attack against the FTC’s Democrat majority:

“The outgoing Democratic majority’s decision to bring suit mere days before the presidential inauguration does the Commission a disservice. Second, the Democratic majority’s decision shortchanges an ongoing investigation. The repair market is extremely complicated, comprised of a web of authorized dealers, independent repair shops, customers, and parts manufacturers. The Commission staff has worked diligently to understand the market, but to date we simply do not have the evidence to file this Complaint with any real confidence of our ultimate chance of success.”

I can’t imagine what more evidence Ferguson would need. We could soon find out because with the GOP now back in the White House – presto changeo – Ferguson has become the chairman of the FTC.

He wasted no time in signaling his partisan particulars. Look no farther than his acceptance statement as chair:

“Under the President’s leadership, we will end the previous administration’s assault on the American way of life, and we will usher in a new Golden Age for American businesses, workers, and consumers.”

For good measure since taking the reins of the FTC, Ferguson has closed public comment on a number of hot button issues including corporate mergers and acquisitions, protecting workers from illegal business practices, and predatory pricing. That kind of sounds like the guy who says when I want your opinion I’ll give it to you.

Ferguson also noted in his dissent to the complaint that the FTC has been in discussions with Deere to find a settlement to the dispute. In its response to the complaint Deere claimed it is listening and is tinkering with its service tool software:

Well, that kinda, maybe, perhaps, sounds like progress. But I got to tell ya whether it’s enough to appease John Deere farmers is questionable, given the company’s many years of foot dragging. No where does Deere say its giving customers the same access to service tools as the company’s network of dealers.

Which brings me back to Ferguson, who pinky swears that “if the commission and Deere cannot reach such a settlement, then the courts will resolve the right to repair question here. Securing real relief for farmers in short order should be the commission’s focus.”

Good enough, Mr. Chairman. We’ll be watching.

The post FTC should not let John Deere off the hook appeared first on Investigate Midwest.