Tekion Files Lawsuit Against CDK Global's Anticompetitive Practices
Tekion has filed a federal antitrust lawsuit against CDK Global for allegedly engaging in anticompetitive practices in the franchise dealer management system (DMS) market. The lawsuit accuses CDK of maintaining market dominance by restricting customers' access to their own data, preventing them from switching to competing platforms.
The lawsuit highlights several instances of CDK's alleged anticompetitive behavior, including a recent case where a Georgia court had to order CDK to release data for four Asbury Automotive Group dealerships, a $100 million settlement in August 2024 related to DMS price inflation, and CDK's unsuccessful attempt to block Arizona's DMS law requiring unrestricted data access.
Tekion seeks damages and an injunction requiring CDK to facilitate data transfer within 10 days of a dealership's request.
Tekion ha intentato una causa antitrust federale contro CDK Global per presunti comportamenti anticoncorrenziali nel mercato dei sistemi di gestione dei concessionari in franchising (DMS). La causa accusa CDK di mantenere il dominio di mercato limitando l'accesso dei clienti ai propri dati, impedendo loro di passare a piattaforme concorrenti.
La causa evidenzia diversi casi di comportamento anticoncorrenziale da parte di CDK, inclusa una recente situazione in cui un tribunale della Georgia ha dovuto ordinare a CDK di rilasciare dati per quattro concessionari del gruppo Asbury Automotive, un risarcimento di 100 milioni di dollari nell'agosto 2024 relativo all'inflazione dei prezzi DMS e il tentativo non riuscito di CDK di bloccare la legge DMS dell'Arizona che richiede un accesso illimitato ai dati.
Tekion richiede danni e un'influenza che obblighi CDK a facilitare il trasferimento di dati entro 10 giorni dalla richiesta di un concessionario.
Tekion ha presentado una demanda antimonopolio federal contra CDK Global por supuestos comportamientos anticompetitivos en el mercado del sistema de gestión de concesionarios en franquicia (DMS). La demanda acusa a CDK de mantener el dominio del mercado limitando el acceso de los clientes a sus propios datos, impidiéndoles cambiar a plataformas competidoras.
La demanda destaca varios casos del presunto comportamiento anticompetitivo de CDK, incluyendo un caso reciente en el que un tribunal de Georgia tuvo que ordenar a CDK que liberara datos de cuatro concesionarios del grupo Asbury Automotive, un acuerdo de 100 millones de dólares en agosto de 2024 relacionado con la inflación de precios de DMS, y el intento fallido de CDK de bloquear la ley de DMS de Arizona que requiere acceso de datos sin restricciones.
Tekion busca daños y una orden que requiera a CDK facilitar la transferencia de datos dentro de los 10 días posteriores a la solicitud de un concesionario.
Tekion은 CDK Global을 상대로 프랜차이즈 대리점 관리 시스템(DMS) 시장에서 반경쟁적 행위를 했다는 이유로 연방 반독점 소송을 제기했습니다. 이 소송은 CDK가 고객이 자신의 데이터에 접근하도록 제한하여 경쟁 플랫폼으로의 전환을 방해함으로써 시장 지배력을 유지하고 있다고 주장합니다.
소송은 CDK의 반경쟁적 행동의 여러 사례를 강조하며, 그 중 최근 조지아 법원에서 CDK가 Asbury Automotive Group의 4개 대리점 데이터를 공개하라고 명령한 사건, 2024년 8월 DMS 가격 인상과 관련된 1억 달러의 합의, 데이터 접근에 대한 제한 없는 아리조나 DMS 법안을 저지하려는 CDK의 실패한 시도를 포함합니다.
Tekion은 손해 배상과 함께 대리점의 요청 후 10일 이내에 데이터 전송을 용이하게 하도록 CDK에 요구하는 명령을 원하고 있습니다.
Tekion a déposé une plainte fédérale en matière d'antitrust contre CDK Global pour avoir prétendument adopté des pratiques anticoncurrentielles sur le marché des systèmes de gestion des concessionnaires en franchise (DMS). La plainte accuse CDK de maintenir sa position dominante sur le marché en restreignant l'accès des clients à leurs propres données, les empêchant ainsi de passer à des plateformes concurrentes.
La plainte met en avant plusieurs exemples du comportement anticoncurrentiel présumé de CDK, y compris une affaire récente où un tribunal de Géorgie a dû ordonner à CDK de libérer les données de quatre concessionnaires du groupe Asbury Automotive, un règlement de 100 millions de dollars en août 2024 lié à l'inflation des prix DMS, et la tentative infructueuse de CDK de bloquer la loi DMS de l'Arizona qui exige un accès illimité aux données.
Tekion demande des dommages-intérêts et une injonction qui oblige CDK à faciliter le transfert de données dans les 10 jours suivant la demande d'un concessionnaire.
Tekion hat eine bundesweite Antitrust-Klage gegen CDK Global eingereicht, die angeblich wettbewerbswidrig im Markt für Franchise-Händler-Managementsysteme (DMS) handelt. Die Klage beschuldigt CDK, die Marktdominanz aufrechtzuerhalten, indem sie den Zugang der Kunden zu ihren eigenen Daten einschränkt und ihnen somit den Wechsel zu konkurrierenden Plattformen verwehrt.
In der Klage werden mehrere Fälle des angeblich wettbewerbswidrigen Verhaltens von CDK hervorgehoben, darunter ein kürzlicher Fall, in dem ein Gericht in Georgia CDK anordnete, Daten für vier Händler der Asbury Automotive Group freizugeben, ein Vergleich über 100 Millionen Dollar im August 2024 im Zusammenhang mit der Preissteigerung von DMS und CDKs gescheiterter Versuch, das DMS-Gesetz von Arizona zu blockieren, das einen uneingeschränkten Datenzugang verlangt.
Tekion fordert Schadensersatz und eine Einstweilige Verfügung, die CDK dazu verpflichtet, innerhalb von 10 Tagen nach der Anfrage eines Händlers den Datentransfer zu erleichtern.
- Tekion's legal action could potentially break CDK's data monopoly and improve market competition
- Court precedent exists supporting dealerships' data access rights, as shown in the Georgia court ruling
- Ongoing legal battle could result in significant legal expenses
- Uncertain timeline for resolution of the antitrust case
- Current difficulty in accessing customer data may impact business growth
Insights
This antitrust lawsuit against CDK Global represents a significant challenge to established market dynamics in the automotive dealer management system space. The case highlights several critical legal precedents, including CDK's recent
The technological implications of this lawsuit are substantial for the automotive retail sector. Tekion's cloud-native platform incorporating AI, IoT and big data represents a significant technological leap over CDK's legacy systems. The core issue of data portability and integration capabilities directly impacts dealers' ability to modernize their operations. CDK's alleged data hostage tactics not only stifle innovation but also prevent dealers from leveraging modern cloud architecture benefits like scalability, real-time analytics and enhanced customer experience capabilities. The industry trend toward cloud-native solutions and seamless data integration makes this case particularly relevant for the future of automotive retail technology.
This lawsuit could significantly impact Asbury Automotive Group (ABG) and the broader automotive retail sector. CDK's dominant market position has effectively created artificial barriers to technological advancement in the industry. The resolution of this case could accelerate the adoption of modern DMS platforms, potentially reducing operational costs and improving efficiency for dealerships. For ABG shareholders, a favorable outcome could lead to enhanced operational flexibility and reduced technology costs. The
CDK exploits its monopoly and chokehold on customers’ data to stifle competition and innovation
“CDK's technology is outdated. Instead of innovating and competing fairly, CDK has resorted to unfair and anticompetitive business tactics to protect its dominant market position, including holding dealers’ data hostage to stop them from switching to a platform of their choice. In some cases, CDK has even sued its own customers over access to their data,” said Jay Vijayan, Founder & CEO of Tekion. “We have decided to stand up to CDK’s illegal practices to preserve fairness and competition in the automotive retail ecosystem.”
Started in 2016, Tekion’s cloud-native platform transformed the auto retail sector with cutting-edge technologies, including big data, artificial intelligence and IoT, and seamlessly connects a dealer’s business. By contrast, CDK’s outdated technology has failed to keep pace. To beat back fast-growing, innovative rivals like Tekion, CDK maintains a vice grip on its customers’ data – data that CDK itself has acknowledged its customers own – and prevents them from switching to other innovative technology platforms that deliver superior business value and consumer experiences.
CDK has a history of engaging in unfair and anticompetitive business tactics that harm the automotive retail industry. Some public examples include:
-
In October 2024, a
Georgia court ordered CDK to provide the data of four Asbury Automotive Group (NYSE: ABG) dealerships to Tekion. CDK refused to transfer the dealerships’ data to Tekion until compelled by the court. In fact, CDK sued Asbury first since Asbury tried to access its own data. -
In August 2024, CDK agreed to pay
$100 million -
In July 2019, CDK attempted to block Arizona House Bill 2418, also known as the DMS law, which requires companies like CDK to grant third parties unrestricted access to its DMS and all included data without authorization of CDK. CDK fought this law all the way to the Ninth
U.S. Circuit Court of Appeals but lost.
Fenwick & West LLP filed the antitrust suit (a copy is available here) on behalf of Tekion. The lawsuit aims to end CDK's data monopolization and seeks damages and an injunction to facilitate data transfer to Tekion within 10 days of a dealership's request.
About Tekion
Positively disrupting an industry that has not seen disruption in over 50 years, Tekion has challenged the paradigm with the first and fastest cloud-native automotive platform that includes the revolutionary Automotive Retail Cloud (ARC) for retailers, Automotive Enterprise Cloud (AEC) for manufacturers and other large automotive enterprises and Automotive Partner Cloud (APC) for technology and industry partners. Tekion connects the entire spectrum of the automotive retail ecosystem through one seamless platform. The transformative platform uses cutting-edge technology, big data, machine learning and AI to seamlessly bring together OEMs, retailers/dealers and consumers. With its highly configurable integration and greater customer engagement capabilities, Tekion is enabling the best automotive retail experiences ever. For more information, visit www.tekion.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241210707655/en/
Marylou Hastert
press@tekion.com
Source: Tekion
FAQ
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