By Andrew Miller
Last week, a federal antitrust lawsuit settled against John Deere brought a big win to small businesses relying on their machines.
John Deere was ordered to give its customers unlocked access to the equipment they already own. Going forward, the company will share the proprietary diagnostic and repair software it once reserved for its own dealers.
Now, small businesses aren’t locked into expensive repair bills set by John Deere’s monopoly on the market. They’re free to take broken equipment to any repair shop that offers the best price.
Sometimes it isn’t even a repair. A John Deere machine throws an electronic fault code and stops. Previously, a farmer with the parts and thirty years of experience still couldn’t clear it, because the software that could was kept for authorized dealers and no one else.
So he waits. A company technician drives out, plugs in a laptop to clear the code, and writes an invoice. Combine that with a busy harvest season and waiting on the manufacturer costs more than the repair.
On July 8, the FTC and five state attorneys general won their terms. For ten years, under FTC supervision, Deere has to give independent shops and equipment owners the same repair resources it gives its dealers. Dealers are barred from retaliating against anyone who takes the work elsewhere.
In response to the FTC, Deere denied doing anything wrong. It paid a million dollars toward the states’ legal costs and called the outcome good news for its customers.
The theory of the case is what travels. A company sold a machine, then withheld the one thing needed to keep it running, and that allowed it to monopolize the repair market.
That argument has nothing to do with farming. Any manufacturer selling hardware and holding the diagnostic tool behind a dealer login is now on notice. Deere is just the first one to lose.
P.S. The dealer isn’t always the answer. Neither is your bank. Signet Capital Group connects small business owners with lenders, so you can find the one that fits your situation. Get in touch.