DOJ and SEC Investigating Microsoft for Allegations of Bribery of Foreign Officials

By Tracey E. Schelmetic March 20, 2013

“When in Rome, Do as the Romans” may be great advice when you’re on vacation, but for companies doing business in parts of the world where bribery is “business as usual,” things become a lot stickier.

Federal regulators announced this week that Microsoft Corp. is under investigation concerning its relationships with business partners that allegedly bribed foreign government officials in return for software contracts, a number of media sources are reporting today.

Both the U.S. Department of Justice and the Securities and Exchange Commission (SEC) are reportedly investigating allegations of kickbacks made by a former Microsoft representative in China. There are also allegations of improper conduct with resellers and consultants in Italy and Romania. 

Thus far, the government agencies are simply investigation and have not made any allegations or charges as of yet. While the agencies have not commented on the allegations, Microsoft responded to the media reports and said it plans to cooperate.

"Like every large company with operations around the world we sometimes receive allegations about potential misconduct by employees or business partners," said John Frank, Microsoft's vice president and deputy general counsel. "We cooperate fully in any government inquiries," he added.

According to the U.S. Foreign Corrupt Practices Act of 1977, it’s against the law for U.S. companies and foreign companies that trade on U.S. stock exchanges to bribe foreign officials.

An anonymous tipster who worked with a Microsoft China subsidiary alleged that he or she was told to offer kickbacks to Chinese officials in exchange for them signing up for software contracts with Microsoft, Business Insider is reporting today.




Edited by Brooke Neuman

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More

Putting the Flow into Workflow, Paessler and Briefery Help Businesses Operate Better

By: Cynthia S. Artin    9/14/2018

The digital transformation of business is generating a lot of value, through more automation, more intelligence, and ultimately more efficiency.

Read More

From Mainframe to Open Frameworks, Linux Foundation Fuels Up with Rocket Software

By: Special Guest    9/6/2018

Last week, at the Open Source Summit, hosted by The Linux Foundation, the Open Mainframe Project gave birth to Zowe, introduced a new open source soft…

Read More

Unified Office Takes a Trip to the Dentist Office

By: Cynthia S. Artin    9/6/2018

Not many of us love going to see the dentist, and one company working across unified voice, productivity and even IoT systems is out to make the exper…

Read More

AIOps Outfit Moogsoft Launches Observe

By: Paula Bernier    8/30/2018

Moogsoft Observe advances the capabilities of AIOps to help IT teams better manage their services and applications in the face of a massive proliferat…

Read More