Antitrust Suit Against CDK Global, Reynolds and Reynolds Transferred to Illinois
by Erin Shaak
Last Updated on May 8, 2018
Jcf Autos Llc et al v. Cdk Global, Llc
Filed: February 13, 2018 ◆§ 1:18cv1055
CDK Global, LLC and The Reynolds and Reynolds Company are facing another proposed class action lawsuit accusing the parties of fixing the prices of and eliminating competition for the data management systems (DMS) utilized by car dealerships.
CDK Global, LLC and The Reynolds and Reynolds Company are facing another proposed class action lawsuit accusing the parties of fixing the prices of and eliminating competition for the data management systems (DMS) utilized by car dealerships. The suit, originally filed in New Jersey back in November 2017, has recently been transferred to Illinois and is part of a multidistrict litigation along with ten other lawsuits.
The suit argues that the two companies control approximately 75 percent of the DMS market by number of dealerships and 90 percent by number of vehicles sold. From the complaint:
“CDK’s and Reynolds’s dominance in the marketplace has left Dealers with no choice but to enter into long-term contracts for the provision of DMSs with Defendants. These long-term contracts have variable fee provisions, and Defendants have utilized their duopoly power to impose artificially inflated fees for the provision of DMSs to Plaintiffs and Dealers throughout the Class Period.”
The case also argues that the defendants include in their contracts with car dealerships “unlawful exclusive dealing provisions” that require them to utilize CDK’s and Reynolds’ data integration services, surrendering control of their data to the defendants and hindering other data integration services from accessing it.
Read the original complaint below:
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