Software company CDK Global and Cox Automotive have settled their beef amid the sprawling antitrust litigation lodged by car dealers, software vendors and others alleging that CDK and a rival monopolized the market for crucial auto dealer data.
This story by Anne Cullen originally appeared in Law 360.
Cox and CDK told an Illinois federal court Thursday they’ve struck a deal resolving both the antitrust claims leveled by Cox Enterprises’ auto arm and other subsidiaries – including Autotrader.com and Kelley Bluebook – and CDK’s counterclaims that Cox misused its data.
The companies offered no details on the terms, though they noted that they’ve agreed to drop their allegations permanently.
Thursday’s settlement still leaves CDK facing down antitrust allegations lodged by auto dealers, software vendors and third-party software integrators, all contending that CDK and competitor Reynolds and Reynolds Co. called off their rivalry in the market for data management systems to make the most of their duopoly.
Together, the companies control about 75 percent of that market, according to case filings.
After years of jostling for market power, CDK and Reynolds about four years ago suddenly agreed to stop competing with each other, according to case filings. That deal eliminated competitors and middlemen and shot prices sky-high, according to the dealers, vendors and other auto industry players behind the litigation.
Reynolds wasn’t named in Cox’s lawsuit, and it settled out of the dealers’ litigation for roughly $30 million last year.
