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Cox Automotive files lawsuit against CDK Global over anticompetitive business practices

ABR Staff Writer Published 12 December 2017

US-based Cox Automotive has filed a lawsuit against CDK Global over anticompetitive business practices.

Cox Automotive has registered a suit in the US District Court for the Western District of Wisconsin over antitrust and unlawful competition violations.

The company has alleged that CDK and its non-party co-conspirator The Reynolds and Reynolds have committed antitrust violations and caused damage to automotive dealers, vendors of software products and services and the automotive industry.

Cox noted that CDK and Reynolds have tried to avoid competition for integration to dealer data and seize control over dealer and third-party data.

The company also alleged that both firms have imposed high data integration fees on the dealers and vendors.

In addition, Cox claimed that CDK imposed artificial restrictions on dealer and third-party data to favor its own products and services.

Cox Automotive provides digital marketing, financial, retail and wholesale solutions for consumers, dealers, manufacturers and the automotive ecosystem across the globe.

The company’s brands include Autotrader, Dealer.com, Dealertrack, Kelley Blue Book, Manheim, NextGear Capital, vAuto, Xtime and others.

CDK Global provides integrated information technology and digital marketing solutions to the automotive retail industry. The company provides solutions, including dealer management systems, front end solutions and fixed operations.

In addition, CDK Global provides a range of networking solutions to support connectivity and telephony.

Image: Cox Automotive has registered antitrust lawsuit against CDK Global. Photo: courtesy of hywards / FreeDigitalPhotos.net.