Teterboro Automall, Inc.’s proposed antitrust class action against CDK Global, LLC and the Reynolds and Reynolds Company has been transferred into the multidistrict litigation that now includesten lawsuitsfiled by auto dealers nationwide.
The lawsuit, filed in mid-October 2017, alleges the defendant colluded to allocate market share, reduce competition, and fix prices in the market for data management systems relied upon by car dealerships. From the lawsuit:
“CDK (and its affiliates) and Reynolds (and its affiliates) are in the business of providing [data management systems] services to dealer. CDK and Reynolds dominate the DMS industry, and control approximately 75 percent of the United States market for the supply of [data management systems] by number of dealers, and approximately 90 percent when measured by vehicles sold. Because of their dominant market share and the significant barriers to entry of the DMS market, the CDK and Reynolds duopoly has enormous leverage over dealers in the provisions of [data management systems].”