Harley-Davidson Japan Fined ¥211 Million by Antitrust Watchdog for Excessive Sales Quotas

Antitrust Watchdog Imposes Significant Fine

The Japan Fair Trade Commission (JFTC) announced on Thursday, September 18, 2025, that it has ordered Harley-Davidson Japan K.K. to pay a fine of approximately ¥211 million (equivalent to about $1.4 million USD). The penalty was issued in response to the company's violation of Japan's antimonopoly law, specifically for imposing excessive sales quotas on its dealers. In addition to the financial penalty, the JFTC also issued a cease-and-desist order against the Tokyo-based motorcycle unit.

Details of the Unfair Practices

According to the JFTC, Harley-Davidson Japan unilaterally imposed challenging sales targets on 38 dealers across the country. These practices occurred between January 2023 and August 2024. The company reportedly raised sales targets by 30 percent for 2023 and an additional 38 percent for 2024, without providing a clear basis for these increases. Dealers' requests to lower these targets were reportedly refused.

The JFTC found that Harley-Davidson Japan presented dealers with agreements containing proposed quotas every January, effectively forcing them to sign. The watchdog indicated that the company suggested it would not renew contracts if certain target achievement rates were not met, leveraging its superior bargaining position.

Impact on Dealers and Market Position

The excessive quotas led to significant pressure on dealers. To meet these unrealistic targets, some dealers were compelled to purchase new motorcycles themselves, registering them under their own names or those of their staff members. These vehicles were then often sold as 'nearly new used cars' or 'registered unused vehicles' at discounted prices, resulting in little to no profit, and sometimes even losses, for the dealers. The proportion of vehicles registered under related parties' names by dealers averaged about 29 percent in 2023 and approximately 34 percent from January to August 2024.

Harley-Davidson holds a dominant position in the Japanese market for imported small motorcycles. According to the Japan Automobile Importers Association, the brand accounted for 33.3 percent of newly registered imported small motorcycles in 2024, ranking first for the fifth consecutive year since 2020.

Company Response and Legal Framework

Harley-Davidson Japan stated that it 'fully cooperated' with the JFTC's investigation and implemented 'corrective measures' following a voluntary internal probe. The antimonopoly law in Japan explicitly prohibits companies with a superior bargaining position from using it to unfairly disadvantage their business partners. The JFTC's action underscores its commitment to enforcing fair trade practices within the country.