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Tekion Lawsuit Against CDK

AlexCaradonna

Rust & Dust
Oct 30, 2023
27
27
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Alex
What are our thoughts here? Does this gain traction in court or will the digital mafia..I mean CDK.. be able to somehow avoid ramifications? I included a few snippets from the filing, but things could really heat up here.


12. As an example of the unfair and unlawful disruption that CDK’s tactics represent for franchise dealers and DMS competitors such as Tekion, Asbury recently was forced to seek judicial intervention just to obtain its own data from CDK for purposes of conducting a four dealership pilot program with Tekion’s DMS platform.1 On August 29, 2024, a Georgia state court issued a preliminary injunction ordering CDK to provide Tekion with the data needed for the four dealerships. A true and correct copy of the August 29, 2024, preliminary injunction order in AsburyAutomotive Group, Inc. v. CDK Global, LLC, Case No. 24-A-04939-3 (Superior Court of GwinnettCourt, State of Georgia), is attached as Exhibit B.

39. CDK is well aware of the competitive threat from modern DMS providers. As Asbury’s CIO explained to the Court in Georgia, “if an enterprise public company like Asbury can go on [Tekion’s] system, anybody can go on [Tekion’s] system.” Because its legacy DMS cannot compete on its merits, CDK has decided to take unlawful advantage of its market power, of the control it has over dealer data access, of the time and planning required for a dealer to switch DMS providers, and of the potentially devastating consequences to a dealer of a failed or delayed data migration.
 
What are our thoughts here? Does this gain traction in court or will the digital mafia..I mean CDK.. be able to somehow avoid ramifications? I included a few snippets from the filing, but things could really heat up here.


12. As an example of the unfair and unlawful disruption that CDK’s tactics representfor franchise dealers and DMS competitors such as Tekion, Asbury recently was forced to seekjudicial intervention just to obtain its own data from CDK for purposes of conducting a fourdealership pilot program with Tekion’s DMS platform.1 On August 29, 2024, a Georgia state courtissued a preliminary injunction ordering CDK to provide Tekion with the data needed for the fourdealerships. A true and correct copy of the August 29, 2024, preliminary injunction order in AsburyAutomotive Group, Inc. v. CDK Global, LLC, Case No. 24-A-04939-3 (Superior Court of GwinnettCourt, State of Georgia), is attached as Exhibit B.

39. CDK is well aware of the competitive threat from modern DMS providers. AsAsbury’s CIO explained to the Court in Georgia, “if an enterprise public company like Asbury cango on [Tekion’s] system, anybody can go on [Tekion’s] system.” Because its legacy DMS cannot compete on its merits, CDK has decided to take unlawful advantage of its market power, of the control it has over dealer data access, of the time and planning required for a dealer to switch DMS providers, and of the potentially devastating consequences to a dealer of a failed or delayed data migration.
Glad to see a larger dealer group willing to take on the fight.
 
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