On Monday, February 13, 2023, the United States Department of Justice (DOJ) moved to file a Statement of Interest siding with Plaintiffs and urging the court to reject Defendant John Deere’s arguments of what constitutes anticompetitive behavior under the Sherman Act.
In its 23-page Statement, the DOJ disagreed with Deere’s interpretation of the law and rejected the company’s claims that they should be exempt from antitrust scrutiny unless Plaintiffs were deceived or surprised by the company’s repair restrictions.
“Deere proposes a safe harbor where the law provides none,” the DOJ wrote. “Deere would have the Court presume that, in every other circumstance, a competitive foremarket (as Deere argues the tractor market to be) necessarily shields consumers from any possible market power or monopoly power in a single-brand aftermarket (such as the market for Deere repair services).
Deere is wrong.”
In justifying its stance, the DOJ cited Eastman Kodak Co. v. Image Technical Services Inc. as the controlling precedent.
“Deere’s proposed presumption contravenes the Supreme Court’s decision in Kodak and the weight of circuit court authority,” the DOJ wrote. “Although deception or surprise can be relevant to a proper Kodak analysis, they are not alone dispositive or required.”
The case, Deere & Company Repair Services Antitrust Litigation, Case No. 3:22-cv-50188 MDL No. 3030 was filed by WBE and co-counsel in the United States District Court for the Northern District of Illinois.
To read the DOJ’s Statement of Interest, click here.