Two antitrust lawsuits against CDK Global Inc. and Reynolds and Reynolds Co. pointed to a potential smoking gun: a written agreement that implies collusion by the dealership management system giants.
A complaint filed by Authenticom, a data integration service provider, on May 1, cites a February 2015 document in which CDK and Reynolds agreed that they would no longer compete in the dealership data integration market. Under the written agreement, CDK and Reynolds would be the exclusive data integration providers for data on their respective DMS platforms, the complaints said.
On the same day, Motor Vehicle Software Corp. amended its February antitrust lawsuit against CDK, Reynolds and Computerized Vehicle Registration Inc., their jointly owned registration and titling company. That suit said CDK and Reynolds were illegally blocking Motor Vehicle Software from joining their data access programs, which would grant it access to data from dealership management systems, in order to protect Computerized Vehicle Registration from competition.
"The agreement to divide the market is inherently a violation of antitrust law," said John Brueggeman, Motor Vehicle Software's chief strategy officer. CDK and Reynolds' written agreement, discovered by the same lawyer that works for Authenticom, gives clear evidence of collusion and anticompetitive behavior, he said. "This absolutely strengthens our case."