A class action complaint accusing Tesla of anti-competitive behaviour has been dismissed by a US federal judge in San Francisco. The complaint alleged that Tesla forced customers to pay ‘supracompetitive’ prices and suffer exorbitant wait times to maintain and repair their vehicles.
Claims filed under California consumer protection laws were also dismissed.
The 39-page lawsuit claimed that people who drive internal combustion vehicles historically have had numerous options for repairs and maintenance and a choice of original equipment or aftermarket parts, whereas Tesla drivers can only schedule service at a Tesla dealer, where their car will be repaired using only Tesla original equipment manufacturer parts.
According to the complaint, this is because Tesla has leveraged its power in the electric vehicle market in the United States to “monopolise and restrain” the markets for Tesla repair services and parts.
“As a result of this anticompetitive course of conduct, Tesla has prevented independent providers from entering the Tesla repair services market, prevented its OEM parts manufacturers from producing Tesla-compatible parts for anyone other than Tesla, and prevented market entry by non-OEM, Tesla-compatible parts manufacturers,” the complainants said.
However, the judge ruled that the complainants failed to demonstrate that the alleged issues were “not generally known” when the vehicles were purchased or that running costs could be predicted. Additionally, the complainants could not show that Tesla coerced them into using its services and parts.
“To be sure, plaintiffs allege that defendant misled them about… how much maintenance its EVs are designed to need and how long that maintenance ought to take,” said US District Judge Trina Thompson. “But nowhere do plaintiffs allege that consumers are in fact unaware of the supposedly supracompetitive prices and exorbitant wait times.”
While she dismissed the class action, Thompson said the plaintiffs can amend the complaint.