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Authenticom CDK Lawsuit Update

malinda.terreri

Lot Lizard
Jun 4, 2011
67
26
First Name
Malinda
Some good news received yesterday...

LA CROSSE, Wisc., July 14, 2017
- Today a federal court granted Authenticom, Inc.'s motion for a preliminary injunction against CDK Global ("CDK") and The Reynolds and Reynolds Company ("Reynolds"). The Court held that CDK and Reynolds must "cease blocking Authenticom" from providing "data integration services to dealers who authorize Authenticom to provide this service." In so ruling, the Court held that Authenticom had satisfied each element for granting a preliminary injunction, including demonstrating that CDK and Reynolds have likely violated federal antitrust laws. The Court gave the parties one week to submit proposed language effectuating the Court's ruling.

"The Court's ruling today is an important step forward not only for Authenticom, but for the automotive industry as a whole. Authenticom can now meet the data integration needs of both dealers and vendors without the threat of Authenticom's dealer-authorized data access being blocked," said Authenticom CEO Steve Cottrell. "We look forward to providing secure, cost-effective, and reliable data integration services to our existing and future customers, finally without the threat of being hindered by CDK's and Reynolds' anticompetitive conduct."

On May 2, 2017, Authenticom filed an antitrust lawsuit against CDK and Reynolds in federal court in the Western District of Wisconsin. Then on May 18, 2017, Authenticom filed a motion for a preliminary injunction, seeking an order enjoining CDK and Reynolds from blocking Authenticom's dealer-authorized data integration services. An evidentiary hearing was held before the Court on June 26-28, 2017, during which executives from Authenticom, CDK, Reynolds, vendors, and dealers testified. Expert witnesses on data security and antitrust economics also testified.

In today's ruling, the Court held that there is sufficient evidence to find "the existence of a per se illegal horizontal conspiracy" between CDK and Reynolds to divide the data integration market and block competitors like Authenticom. The Court also found that CDK's and Reynolds' contracts with dealers and vendors contain provisions that are likely to be found unlawful in restricting free competition in the data integration market.

"We look forward to competing with CDK and Reynolds on a level playing field," Mr. Cottrell stated. Authenticom's DealerVault service allows dealers to have complete control and transparency over how their data is used by vendors. DealerVault also helps vendors and dealers keep their costs down with standardized pricing for vendors of $25 per month for a single nightly data feed or $50 per month for two or more nightly data feeds - a fraction of the cost charged by CDK and Reynolds. DealerVault's security protections are gold standard, using Microsoft's most secure cloud-based solution, Azure. DealerVault has been an overwhelming industry choice, enrolling over 8,000 dealerships as well as over 400 vendors on its platform in only the past two years.
 
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ryan.gerardi

Rust & Dust
Mar 17, 2011
201
94
First Name
Ryan
This is good new for the auto biz. It's the greatest racket I've personally witnessed in my 15+ years in the industry.

Be sure to check out my piece about this here on DR where I recap the sequence of events from beginning to today: http://bit.ly/2u50OIy

Also, if you listened to my podcast about this, I call out the NADA for its INACTION on the matter. I think that's BS and an injustice to the dealership community: http://bit.ly/dritmeps3
 
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craigh

Super Moderator
May 19, 2011
1,702
1,175
First Name
Craig
How many employees did they have?
55 is a huge number - they must be bigger than I thought.

Edit: I RTFA.
nearly 110 employees
 
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Reactions: Alexander Lau

Alexander Lau

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Feb 11, 2015
2,498
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Alex
How many employees did they have?
55 is a huge number - they must be bigger than I thought.

Edit: I RTFA.
nearly 110 employees
Yeah, 55 is a huge number. I remembered seeing this thread and figured to ping it. It's a shame that they had to endure this much pain over a lawsuit.
 

ryan.gerardi

Rust & Dust
Mar 17, 2011
201
94
First Name
Ryan
This whole thing is BS. It's one of the few things in this business that fires me up. I've known Steve a long time and have watched him grow and innovate. What amazes me is the lack of involvement and lobbying from NADA. This should never have amounted to this.

Let's be sure to talk about this Friday on Refresh Friday.
 
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Alexander Lau

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Feb 11, 2015
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765
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Alex
This whole thing is BS. It's one of the few things in this business that fires me up. I've known Steve a long time and have watched him grow and innovate. What amazes me is the lack of involvement and lobbying from NADA. This should never have amounted to this.

Let's be sure to talk about this Friday on Refresh Friday.
I couldn't agree more man. It's total crap.