Tekion, a provider of cloud-native platforms for the automotive retail ecosystem, filed a federal antitrust lawsuit against CDK Global, Inc. on December 10, 2024. The lawsuit accuses CDK of systematic anticompetitive practices in the franchise dealer management system (DMS) market.
Tekion alleges that CDK exploits its dominant market position by stifling competition and innovation, including holding dealers' data hostage to prevent them from switching platforms. The lawsuit seeks damages and an injunction to facilitate data transfer to Tekion within 10 days of a dealership's request.
Asbury Automotive Group is in the process of transitioning its operations to the Tekion DMS, with full company-wide conversion targeted by the end of 2026 or early 2027. A favorable outcome for Tekion in this lawsuit could benefit Asbury by improving the competitive landscape and data accessibility within the DMS market.
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