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Tesla faces antitrust lawsuits over alleged anti-competition policies
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By Nithya Bose in US business news, posted March 16, 2023
Tesla faces two lawsuits after being accused of unfairly restricting competition for maintenance and replacement parts for its electric vehicles.
The two proposed antitrust class actions have been filed in San Francisco federal court.
They claim that the automaker pushed buyers to pay more and wait longer for repair services.
The complaint says Tesla created its electric vehicles, warranties, and repair policies to put off owners and lessees from using independent shops not under its control.
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Plaintiffs lawyer Matthew Ruan of Freed Kanner London & Millen said: "Tesla needs to open up its ecosystem and allow competition for the servicing of Tesla [vehicles] and sales of parts.”
Tesla's representative did not immediately respond to requests for comments.
Tesla's defense counsel has yet to appear in the cases.
The proposed class in both cases would include those who have paid Tesla for repairs or parts since March 2019.
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Each complaint was brought on behalf of a California resident, and neither lawsuit has mentioned a damages amount.
Ruan said the potential class comprises hundreds of thousands of Tesla owners and lessees, and damages might amount to hundreds of millions of dollars.
Tesla has joined the ranks of other major automakers facing "right to repair" antitrust action for alleged discriminatory behavior.
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The new charges claim Tesla's purported service and repair restraints led to "exorbitant wait times" for drivers.
It notes that the drivers might have gone to an independent repair shop.
The complaints demand that Tesla's monopoly on maintenance services and parts be "dismantled."
It also wants the business forced to make its repair manuals and diagnostic tools "available to individuals and independent repair shops at a reasonable cost."
Source: Reuters
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