CDK exploits its monopoly and chokehold on customers’ data to stifle competition and innovation
Tekion, innovator of the first cloud-native platform serving the entire automotive retail ecosystem, today filed a federal antitrust lawsuit against CDK Global, Inc. (“CDK”) accusing CDK of engaging in a systematic scheme to thwart competition in the franchise dealer management system (DMS) market.
“CDK's technology is outdated.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 By contrast, CDK’s outdated technology has failed to keep pace.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 after it was sued by dealerships in a class action antitrust lawsuit for colluding to inflate DMS prices.
- 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/
Contacts
Marylou Hastert
press@tekion.com
