Angus Verley:
John Deere is being sued in the United States by the Federal Trade Commission. It alleges John Deere has restricted the ability of farmers and independent technicians to repair equipment such as tractors and combines. Olivia Saunders spoke to the Assistant Minister for Competition, Andrew Leigh, about what the legal action means.
Andrew Leigh:
We know this is a billion‑dollar industry and it involves some pretty complicated machinery. John Deere now has more software engineers than mechanical design engineers, which really tells you something about the level of IT that’s in modern farm machinery. What we’ve done is to champion right to repair in the area of motor vehicles, where it was really important for independent repairers. And we’ve encouraged in the agricultural sector, the National Farmers Federation and the peak body representing the dealers who produce the material to come to a voluntary arrangement to share information. We do recognise that growing an independent repair sector is something that many farmers would benefit from. We’ve been encouraging those in the industry to come to an arrangement that would make that happen.
Olivia Saunders:
Do you think that these kinds of setups where companies make it so that people who use their equipment have to go through certified dealers to get repairs done, do you think that that gets in the way of fair market competition?
Leigh:
Well, we’re certainly watching it closely, as is the Australian Competition Consumer Commission. We know that farmers don’t have a lot of choices about where to buy their machinery and even fewer choices about where to get it serviced or repaired. Unlike the automotive sector, you don’t already have a big set of independent repairers out there. And the case that’s been made to me is if we had more information sharing, then we could have more independent repairers. The government is certainly open to that. But what we’re arguing in the first instance is that a voluntary agreement would be the way to go.
Saunders:
Obviously the right to repair extends to other industries as well. But in terms of, the material impact on farmers sort of having to go to certified dealers to get equipment fixed. I understand that some of this equipment is more computerised than it’s ever been, but what kind of impact is this really having on farmers and ag businesses that have to dole out cash every time they want to get something repaired, even if they have the skill themselves?
Leigh:
It can be incredibly costly. And often that cost isn’t just the cost of repair, it’s the cost of delaying a harvest when produce is potentially rotting or where markets really need it. And so, if you’ve got a key bit of farm machinery and you’ve got a time sensitive process, then it can be ruinous for farmers to have those delays. So, the case that’s been made to me is having more independent repairers would provide farmers with more flexibility when they get quick repairs as well as the ability in some cases to have a go at those repairs themselves.
Saunders:
I guess, look, we’re speaking about farmers here because of the case against John Deere in the United States. But obviously the right to repair, as I said before, it extends to other industries as well. It’s, I think, fairly common in some of the major tech companies. Yeah. So, do you want to maybe just speak to the other industries and people that this might be affecting?
Leigh:
Yeah, absolutely. I mean, you think about the right to repair with consumer products. We’ve thankfully seen Apple in recent years move away from its initial hardline position that no one could repair your iPad or your iPhone to now a more moderate position in which they are open to third party repairers fixing those items. I think that’s useful, and it does reflect the fact that third party repairers are a fact of life in many industries. We want to encourage firms to be more open with their repairers. They don’t have to hand over every detail of the intellectual property, but it is just good business sense to allow independent repairers to step up.
Saunders:
The other side though, is it good business sense if a private corporation has come up with a way to make more money? Is it good business sense to be sharing that information if it’s getting in the way of their bottom line?
Leigh:
Well, I think it’s the responsibility of companies to be producing products that can be repaired by others. I don’t think it is reasonable to have the old approach that sometimes printer manufacturers have taken that you can only use their cartridges in order to refill. We want products being out there which are able to be repaired by others. That’s also good for the environment because if you can’t repair products, often people end up throwing them away and are thriving. A repair industry ensures that product life is extended and that’s good for the planet.
Verley:
The Assistant Minister for Competition, Andrew Leigh ending that report.