Cox Automotive filed a lawsuit Monday against CDK Global for what it says are “ongoing antitrust and unlawful competition violations,” in addition to other claims.
The suit was filed in the U.S. District Court for the Western District of Wisconsin.
The suit claims CDK and The Reynolds and Reynolds Company — which Cox Automotive said is a “non-party co-conspirator” — violated antitrust law and harmed dealers, software product vendors and the auto industry at large, Cox Automotive said in a news release.
“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,” Cox Automotive said.
The company is also claiming that CDK and Reynolds “enormously inflated data integration fees, reaping financial windfalls from their unlawful conspiracy to the detriment of both dealers and vendors,” it said in the release.
Cox Automotive also argues 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.”
When reached by Auto Remarketing via email, representatives with both CDK and Reynolds declined to comment.
A public redacted version of the suit is available here.