Harley-Davidson Japan Facing Potential Fines for Antimonopoly Law Breach

Harley-Davidson Japan is facing some hefty fines as the Asian country’s FTC (Fair Trade Commission) is considering imposing fines due to excessive sales quotes on dealers and the subsequent violation of the antimonopoly law, according to reports.

The FTC is apparently considering a surcharge of 200 million Yen (around £1 million) against the American brand’s Japanese firm as it’s believed to have used a superior bargaining position.

A report from the Japan Times said the FTC “is also considering a cease-and-desist order against the firm, which has already been notified of the planned penalty. The antimonopoly watchdog will make a final decision after hearing opinions.

According to the sources, Harley-Davidson Japan unilaterally set sales targets for new motorcycles at dozens of dealer stores in Japan from January 2023 at the latest.”

The report also goes on to state that the targets were made very difficult to achieve as a result under normal working conditions.

It’s claimed that some dealers purchased motorcycles under their own names or the names of staff members to meet the targets. They were then forced to sell those motorcycles to customers at a lower price than newer vehicles as the motorcycles were already registered after the initial purchase.

As a result some dealerships allegedly felt pressured to comply with Harley-Davidson Japan's demands in order to continue its sales and the country’s antimonopoly law prohibits businesses in a better financial position from using it to disadvantage their business partners.

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