DOJ-Deere Case: Kinze Pushes Back, Ag Leader Gets Involved
The story continues to unfold in the Department of Justice antitrust lawsuit against John Deere.
Kinze Manufacturing last week asked a federal judge to protect it from having to turn over sensitive internal documents that Deere subpoenaed as part of the case.
Kinze says Deere is trying to access marketing strategies, sales data, research and development plans, and other documents.
Deere served the Iowa company a subpoena last month seeking the documents as part of the ongoing antitrust lawsuit the DOJ filed to stop Deere from purchasing Precision Planting, a Monsanto subsidiary that manufactures precision-planting equipment.
“Kinze should not be required to turn over its most sensitive confidential business information to Deere, simply because Deere holds the unsubstantiated belief that the information may be relevant to its litigation,” attorneys for Kinze wrote in the motion. “Deere cannot be allowed to convert the division’s lawsuit into a license to rummage through the internal workings of Kinze.”
Learning the potential capabilities and future plans for Kinze’s precision planting business could help Deere defend itself against claims that the acquisition of Precision Planting would squeeze competitors out of the market, said Jennifer Zwagerman from the agricultural law center at Drake University Law School.
Kinze argues that turning over those documents would divulge its most tightly held business secrets and irreparably affect its ability to compete with Deere.
In another development, Deere said it has reached an agreement enabling Ag Leader, a precision agriculture competitor, to offer products currently sold by Precision Planting. The agreement depends upon Deere completing the acquisition.
This began a year ago when Deere signed an agreement to acquire Precision Planting. In August, the DOJ challenged the transaction, stating that the deal would bring together the largest manufacturers of high-speed planting technology. Deere said the antitrust concerns were “misguided,” and that the company would fight the lawsuit.
In the agreement between Ag Leader and Deere, Ag Leader would receive the technologies and licenses necessary to manufacture and sell the Precision Planting SpeedTube and related technology once the acquisition of Precision Planting is complete. The agreement enables Ag Leader to further develop these products.
Ag Leader remains a completely independent competitor to Deere and Precision Planting.
Source: Agriculture.com, Associated Press