CDK Global Agrees to $630 Million Settlement in Dealer Data Antitrust Case

Automotive technology giant CDK Global has agreed to pay $630 million to settle antitrust claims that it overcharged software vendors for access to dealership data by restricting access to its systems.

The proposed settlement, filed Monday night in a Wisconsin federal court, still requires judicial approval. While CDK has agreed to pay the sum, the company denies any wrongdoing.

Lawsuit Accused CDK of Anti-Competitive Practices

CDK Global, based in Austin, Texas, is owned by Brookfield Business Partners and provides software platforms for auto dealers, helping them manage sales, financing, and service operations.

The lawsuit was originally filed in 2018 by AutoLoop and other vendors who develop apps for dealership management systems, handling inventory, repair orders, and warranty services.

According to the lawsuit, CDK allegedly restricted access to dealership data, forcing vendors to pay higher fees to integrate their services. The case was certified as a class action in July 2023.

CDK CEO: Time to Move On

CDK’s chief executive, Brian MacDonald, stated that the company wanted to put the litigation behind them.

“We felt it was time to bring this long-standing litigation to a conclusion,” MacDonald said, adding that the settlement would not impact CDK’s business.

The vendors had originally sought $490 million in damages at trial. Under U.S. antitrust laws, a jury award could have been tripled, significantly increasing CDK’s potential financial liability.

Who Is Included in the Settlement?

The settlement covers 243 companies that purchased data integration services from CDK or its competitor Reynolds & Reynolds since October 2013. However, Reynolds & Reynolds is not named as a defendant in this case.

Lawyers representing the vendors called the settlement “extraordinary”, highlighting the years of litigation leading to this resolution.

They also plan to request approximately $200 million in legal fees from the settlement funds.

CDK Previously Paid $100 Million to Auto Dealerships

This is not CDK’s first settlement related to its dealer management systems. In August 2023, the company agreed to pay $100 million to U.S. auto dealerships who alleged they were overcharged for CDK’s software services.

With this latest $630 million settlement, CDK Global continues to resolve long-standing antitrust disputes as it looks to move forward in the auto tech industry.