26 September 2023

ACCC plants hope for machines on farms

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Purchasers of agricultural machinery should benefit from more independent competition in servicing and repair markets, the Australian Competition and Consumer Commission (ACCC) has said following a study of the market.

Deputy Chair of the ACCC, Mick Keogh said the Commission’s report, Agricultural machinery market study, made a number of recommendations aimed at improving competition and access for purchasers of after-sales services.

Mr Keogh said the Report looked at a range of competition and fair trading issues in markets for the direct sale of agricultural machinery, as well as for after-sales services, such as repairs.

“Modern tractors, harvesters and other agricultural machinery use complex computerised systems that involve embedded software and specific tools and parts,” Mr Keogh said.

“While this technology has increased productivity, it has also meant that access to this software, tools and parts is needed to repair the machinery,” he said.

“These are often held or controlled by manufacturers, limiting the ability of independent repairers to do the work.”

Mr Keogh said the restricted access to software tools, technical information, as well as service manuals and parts held by manufacturers was limiting competition in repair markets.

He said the Report also found warranties could limit competition by discouraging the use of independent repairers.

“Competition in after-sales markets would be improved if independent repairers had access to software, tools and parts on fair and reasonable commercial terms,” he said.

“This is an important issue that runs across a number of industries, both in Australia and overseas.”

Mr Keogh said the ACCC recommended that agricultural machinery be considered for future inclusion in the motor vehicle service and repair information sharing scheme; that agricultural machinery be included in any broader ‘right to repair’ scheme introduced in Australia; and that manufacturers and dealers provide purchasers with better information about warranties, dispute resolution, and issues such as data rights and use.

He said the ACCC would develop materials to assist purchasers to understand their business and consumer rights in relation to agricultural machinery.

The ACCC’s 59-page Report can be accessed at this PS News link.

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