CDK Global Automotive Dealer Software Antitrust Litigation
Case Overview
CDK Global and Reynolds & Reynolds are the dominant providers of Dealer Management Systems (DMS) — the core operating software used by automotive dealerships across the United States. Beginning around 2015, CDK and Reynolds allegedly entered into a conspiracy to lock out independent, third-party data integrators from accessing DMS platforms, forcing dealerships to pay premium prices for CDK-approved integrators and blocking competition in the automotive software market. Dealers alleged this scheme violated Sections 1 and 2 of the Sherman Antitrust Act, resulting in artificially inflated fees and suppressed innovation.
The multidistrict litigation, consolidated in the Northern District of Illinois, involved thousands of franchised auto dealerships as plaintiffs. CDK Global reached a landmark $100 million settlement in 2022 to resolve the dealer-plaintiff track of the litigation. The case underscored growing antitrust scrutiny of software ecosystems in the automotive industry, and related litigation involving data integrators and consumers continued in parallel proceedings.
Who May Qualify
Franchised automotive dealerships in the United States that used CDK Global's Dealer Management System between approximately 2013 and 2021 and paid fees for data integration services may be eligible to participate in the settlement.
Frequently Asked Questions
What was the CDK Global antitrust lawsuit about?
The lawsuit alleged that CDK Global and Reynolds & Reynolds conspired to block independent data integrators from accessing their dealer management software, forcing auto dealerships to pay inflated prices for approved vendors. This was argued to be an illegal restraint of trade under federal antitrust law.
How much did CDK Global settle for?
CDK Global agreed to a $100 million settlement to resolve claims brought by franchised auto dealerships. The settlement was reached in 2022 as part of the multidistrict litigation consolidated in the Northern District of Illinois.
Can auto dealerships still file a claim against CDK Global?
The dealer-plaintiff settlement track has concluded, but dealerships that believe they were impacted should check with the settlement administrator for any remaining claims windows or related proceedings.