CDK Global has agreed to pay $630 million to settle antitrust claims accusing the company of inflating prices for software vendors accessing dealership data. CEO Brian MacDonald stated that the settlement will be paid over three years in an official statement on the CDK Global website. The settlement, filed on Monday in a Wisconsin federal court, still requires approval from a judge.
The lawsuit, initiated in 2018 by tech vendor AutoLoop and others, alleged that CDK restricted access to dealership management systems, forcing vendors to pay higher fees for data integration. These systems, crucial for tasks like inventory management, repair orders, and warranty services, play a vital role in dealership operations. The case was certified as a class action in July 2024 and included 243 companies that purchased data integration services from CDK or its competitors since October 2013.
CDK’s handling of third-party vendor access to dealer management systems was at the center of the dispute. Vendors like AutoLoop rely on this access to develop specialized software applications that integrate with dealership systems. By limiting access, CDK was accused of driving up costs and reducing competition.
Although CDK denied any wrongdoing, the settlement avoids a potentially costly trial. The vendors had initially sought $490 million in damages, a figure that could have tripled under antitrust laws.
This $630 million agreement comes on the heels of another significant settlement by CDK. In August, the company paid $100 million to resolve a class action brought by U.S. auto dealerships, which claimed they were overcharged for dealer management systems.
Lawyers representing the vendors, including AutoLoop, have praised the settlement as a result of years of complex litigation. They intend to request $200 million in legal fees from the settlement fund.
