Cox Automotive Files Antitrust Lawsuit Against CDK Global
Monday December 11, 2017
ATLANTA, Dec. 11, 2017 – Cox Automotive announced today that it has filed a lawsuit against CDK Global LLC (NASDAQ: CDK) (“CDK”) asserting, among other claims, ongoing antitrust and unlawful competition violations.
The suit, filed in The United States District Court for the Western District of Wisconsin, alleges that CDK and its non-party co-conspirator The Reynolds and Reynolds Company (“Reynolds”) have committed significant antitrust violations and inflicted widespread harm on automotive dealers, vendors of software products and services, and the automotive industry as a whole. Specifically, the lawsuit alleges that CDK and Reynolds have conspired to: (i) eliminate competition for integration to dealer data, and (ii) seize control over dealer and third-party data.
In addition, the suit alleges that CDK and Reynolds have imposed enormously inflated data integration fees, reaping financial windfalls from their unlawful conspiracy to the detriment of both dealers and vendors. The lawsuit alleges that CDK has placed artificial restrictions on dealer and third-party data in order to tilt the table in favor of CDK’s own products and services, leaving competing solutions, including those offered by Cox Automotive, at an unfair disadvantage.
The complaint is available at: https://www.coxautoinc.com/wp-content/uploads/2017/12/Cox-Automotive-Complaint-Filed.pdf
Cox Automotive is represented in this matter by the law firm of Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., of Washington, D.C.
About Cox Automotive
Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, financial, retail and wholesale solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. Committed to open choice and dedicated to strong partnerships, the Cox Automotive family includes Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, vAuto®, Xtime® and a host of other brands. The global company has 34,000-plus team members in more than 200 locations and is partner to more than 40,000 auto dealers, as well as most major automobile manufacturers, while engaging U.S. consumer car buyers with the most recognized media brands in the industry. Cox Automotive is a subsidiary of Cox Enterprises Inc., an Atlanta-based company with revenues exceeding $20 billion and approximately 60,000 employees. Cox Enterprises’ other major operating subsidiaries include Cox Communications and Cox Media Group. For more information about Cox Automotive, visit www.coxautoinc.com.
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