Article Abstract:
The Federal Trade Commission should deny Harley-Davidson's petition that the 1954 order barring it from using exclusive dealing arrangements be set aside. Harley-Davidson continues to use anticompetitive arrangements, it misrepresents to the FTC the market in which it competes, and it has enormous market power. If its petition succeeds, it will use that power to block its competitors, harming consumers. Harley-Davidson dominates the markets for superheavyweight motorcycles and for the parts and accessories needed to customize and maintain them.
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Article Abstract:
Many Harley-Davidson dealers will go out of business and independent manufacturers of parts for Harleys will have less access to the market if the Federal Trade Commission decides to remove the 1954 consent decree that limits Harley-Davidson's ability to enforce exclusive dealing agreements. Consumers will lose the ability to choose between Harley parts and competing parts because no dealer will be allowed to offer both. The decline in the number of dealers that will result when some are forced out of business will also harm consumer welfare.
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Article Abstract:
The arguments made by Harley-Davidson that competition would be promoted by removal of the 1954 Federal Trade Commission consent decree that kept the motorcycle manufacturer from enforcing exclusive dealing arrangements are not convincing in light of its market power. The request is an attempt to extend its dominance in the heavy motorcycle market into the parts market. Allowing Harley-Davidson to do so would put many small manufacturers out of business and would reduce the choices and information available to consumers.
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