Key Facts
• Harley-Davidson Japan imposed excessive sales quotas on dealers since January 2023.
• Dealers were forced to purchase motorcycles themselves to meet quotas.
• Failure to meet quotas risked non-renewal of dealership contracts.
• Dealers registered unsold bikes under staff names, later selling them at reduced prices.
• This practice, known as “forced self-purchase,” led to financial losses for dealers.
• Japan’s Fair Trade Commission plans to issue a $2 million fine for antitrust violations.
• The company was found guilty of abusing its superior bargaining position.
Summary
Harley-Davidson Japan has been accused of violating antitrust laws by imposing excessive sales quotas on its dealers without sufficient consultation. Since January 2023, dealers were forced to purchase unsold motorcycles themselves to meet these quotas, risking contract termination if they failed. This practice, referred to as “forced self-purchase,” caused financial strain on dealers, who had to sell these bikes at reduced prices. Japan’s Fair Trade Commission has decided to impose a $2 million fine on the company for abusing its dominant position. The ruling highlights the challenges faced by dealers under such practices and aims to prevent further exploitation.
