The dealership data war between CDK Global and Tekion is heating up as CDK Global launches a federal lawsuit against its rival, accusing Tekion of illegally accessing confidential dealer data in an effort to gain market share.
CDK, one of the automotive industry’s most prominent retail software providers, alleges that Tekion engaged in a sophisticated cyber hacking scheme to extract sensitive dealership information from its systems. The lawsuit claims that Tekion accessed confidential data and used it to entice dealers to abandon CDK’s platform. Additionally, CDK accuses Tekion of interfering with its dealer relationships and violating unfair competition laws, calling for court intervention to put an end to these alleged practices and restore fair competition.
Tekion, however, isn’t backing down. The company has denied all allegations, calling the lawsuit “without merit” and arguing that dealerships have the fundamental right to access and control their own data.
This legal clash isn’t the first between the two companies. CDK has faced scrutiny over its data policies, with critics accusing it of restricting dealer access and blocking data transfers to alternative providers. The controversy escalated when CDK filed a lawsuit against one of its own customers, Asbury Automotive Group, for attempting to retrieve its own data, which resulted in significant backlash from the industry.
Adding to the ongoing tension, this latest lawsuit comes just months after Tekion hit CDK with its own federal antitrust suit in December, accusing the company of monopolizing dealership management systems and engaging in anti-competitive tactics.
CDK has already faced costly legal battles over its data practices. The company recently settled an antitrust claim for $630 million, underscoring the high stakes in the fight over dealership data access.
With both companies locked in a courtroom battle and the broader industry watching closely, this fight is far from over. The outcome could reshape the dealership software landscape, setting legal precedents for data access and competition in the automotive retail sector.
