A California judge ruled Monday that Tesla can’t dodge a class-action lawsuit alleging the electric vehicle company operates an illegal monopoly on parts and repairs for its vehicles.
U.S. District Judge in San Francisco Trina Thompson ruled that Tesla could face claims from customers that its company policies constitute coercion and run afoul of state and federal antitrust laws.
The class-action suit combines five lawsuits from customers who have bought Tesla vehicles since 2019.
According to the plaintiffs, Tesla’s design features, which make it so only Tesla can provide necessary software updates, and the company’s lack of authorized service centers constitute a repair monopoly.
They also allege that Tesla restricts whom the company’s manufacturers can sell parts to, constituting a monopoly in that part of the business.
Tesla has long rejected claims that the company is in violation of antitrust laws and has defended the company’s repair and maintenance policies.
Unlike many popular automakers, Tesla sells its vehicles directly to customers and doesn’t rely on dealership franchises for sales. While this offers Tesla a good deal of quality control, it can make repairs and general maintenance inconvenient for some.