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

By

“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
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Why More Leads Won't Fix a Broken Lead Management Process

By: Contributing Writer    6/23/2026

When sales results start to stall, many organizations immediately look to the top of the funnel for answers. The assumption is simple: if revenue i…

Read More

Your Post-Quantum Readiness Starts at Y2Q Summit

By: TMCnet News    5/27/2026

Y2Q Summit is an executive conference focused on helping enterprises prepare for the coming era of quantum computing disruption, cybersecurity transfo…

Read More

Why Award Marketing Should Be Part of Every B2B Tech Company's Growth Strategy

By: Erik Linask    5/20/2026

Award marketing matters for B2B tech companies because industry recognition can strengthen trust, support sales and partner relationships, improve con…

Read More

Why Email Is Still the Most Underrated Layer of Modern Software Infrastructure

By: Contributing Writer    5/15/2026

Take, for example, the following scenario. A user requests a password reset, waits a few seconds, refreshes their inbox and nothing arrives. They try …

Read More

Jitterbit's Visionary Status Signals a Shift in the iPaaS Market

By: Contributing Writer    4/7/2026

As enterprise ecosystems grow more complex, integration has become less of a backend IT function and more of a strategic driver of business performanc…

Read More