NHK has learned that Japan’s antitrust watchdog is investigating the Japanese unit of U.S. motorcycle maker Harley-Davidson. Officials suspect the company has imposed excessive sales quotas on dealers, using its strong bargaining power.

Officials from the Japan Fair Trade Commission searched the Tokyo offices of Harley-Davidson Japan on Tuesday, suspecting the company of violating the Antimonopoly Law.

Sources familiar with the matter say the Japanese arm is said to have imposed the quotas on dealers in 2020 and 2021. The sales targets were almost impossible to achieve using normal promotional methods.

According to the sources, the company reportedly indicated to its dealers that they would not renew their licenses if they failed to meet the quota.

The sources added that some of them bought the bikes to meet the targets. Several struggling dealers were reportedly forced to close their businesses.