SEC and DOJ investigates Microsoft over claims of foreign bribery

[techbeck]

Microsoft is reportedly under investigation for claims of foreign bribery in China and other countries. The Wall Street Journal reports that federal investigators in the US are investigating claims that the software giant bribed foreign government officials to gain software contracts. Officials from the Justice Department and the Securities and Exchange Commission are said to be investigating the claims from a former Microsoft employee in China. The investigation is also said to involve Microsoft's ties to resellers and consultants in Romania and Italy.

The allegations center around claims that a Microsoft executive in China was instructed to provide kickbacks to Chinese officials in return for contracts. Microsoft is said to have investigated the allegations internally, but the whistleblower who was involved in tipping off the company was the subject of a labor dispute with Microsoft in China.

The investigation is understood to be in the early phases. We've reached out to Microsoft to provide comment and we'll update you accordingly.

http://www.theverge....ign-bribery-wsj

[MorganX]

Seeing we're talking China here, I wouldn't rush to judgment.

[Boz]

Not much of a shocker.. and I'm sure they did something. They are so behind on everything, losing ground with OSs, late on mobile, late on tablets that the only thing at this point they can try is to bribe governments and federal institutions to keep using their solutions.

[theyarecomingforyou]

Unfortunately it's not surprising.

And before someone complains about why the US government is investigating Microsoft when it occurred in another country (I already saw such a comment on the front page), it's because it's illegal under the Foreign Corrupt Practices Act.

[Alwaysonacoffebreak]

Not much of a shocker.. and I'm sure they did something. They are so behind on everything, losing ground with OSs, late on mobile, late on tablets that the only thing at this point they can try is to bribe governments and federal institutions to keep using their solutions.

Loosing ground on OS's? Mobile and Tablet sure but OS? Care to explain?

[Mr. Gibs]

Unfortunately it's not surprising.

And before someone complains about why the US government is investigating Microsoft when it occurred in another country (I already saw such a comment on the front page), it's because it's illegal under the Foreign Corrupt Practices Act.

He probably meant that the Government doesn't care when corporations "donate" millions to congressmen so that laws can be modified / added / removed to suit their pusposes. But they do care when the same thing happens in other countries?

Not much of a shocker.. and I'm sure they did something. They are so behind on everything, losing ground with OSs, late on mobile, late on tablets that the only thing at this point they can try is to bribe governments and federal institutions to keep using their solutions.

What do you have to say to the fact that in 2012 Google spent $18.2 million on lobbying compared to Microsoft's $8 million and Apple's $1.9 million?

[theyarecomingforyou]

He probably meant that the Government doesn't care when corporations "donate" millions to congressmen so that laws can be modified / added / removed to suit their pusposes. But they do care when the same thing happens in other countries?

Firstly, such donations are legal in the US - they shouldn't be but they are, so they're not considered bribery. Secondly, their argument was that because it occurred in another country the US government shouldn't be concerned about it, which I think is arrogant and misguided.

[ichi]

What would be surprising is if most big corporations didn't do stuff like this all the time, to some extent.

Outright (ie. plain cash) bribes might not be all that common (or maybe they are, I don't know) but things like leisure travels, lunches and other goodies are fairly usual. Legal or not it has all became a stardard part of the customer courtship game.

[Mr. Gibs]

Firstly, such donations are legal in the US - they shouldn't be but they are, so they're not considered bribery. Secondly, their argument was that because it occurred in another country the US government shouldn't be concerned about it, which I think is arrogant and misguided.

Legal or not it's still bribery ;)

The difference being that in China you probably couldn't even get a road built without bribing some officials. It's the way of life there. It shouldn't be and it shouldn't be the way of life here either but that's just what it is.

And I agree with him because I'd rather the Government pay more attention to what corporations do HERE instead of what corporations do in other countries. Fix the problems at home first then worry about problems worldwide.

[remixedcat]

Oh really lots of companies do that all the time in the USA and you never hear of that crap... why go after MS when other companies do a lot worse.

[theyarecomingforyou]

Legal or not it's still bribery ;)

Legally? No. Morally and by definition? Absolutely. I'm not disagreeing with you.

The difference being that in China you probably couldn't even get a road built without bribing some officials. It's the way of life there. It shouldn't be and it shouldn't be the way of life here either but that's just what it is.

You say that as if the same isn't true in the US. And just because it is common there doesn't mean Microsoft should be engaging in such behaviour. If Microsoft has broken the law is deserves to be punished accordingly.

And I agree with him because I'd rather the Government pay more attention to what corporations do HERE instead of what corporations do in other countries. Fix the problems at home first then worry about problems worldwide.

The two are not mutually exclusive. Companies cannot be allowed to flout the law in other countries without consequence.

[techbeck]

Oh really lots of companies do that all the time in the USA and you never hear of that crap... why go after MS when other companies do a lot worse.

Not talking about the US. Different rules.

[theyarecomingforyou]

Oh really lots of companies do that all the time in the USA and you never hear of that crap... why go after MS when other companies do a lot worse.

The US government doesn't simply pick companies at random - it responds to the evidence it has. In this case a former employee has apparently blown the whistle on the scandal and the US government is obligated to investigate.

[remixedcat]

US companies like monsanto do far worse stuff in other countries. software doesn't hurt people but monsanto's crap does.

[MorganX]

Has anyone considered MS is bribing Chinese officials to stop pirating Microsoft software en masse? They would lose less money just paying the officials as opposed to the billions they lose in State sponsored piracy of Microsoft Software. Including holograms.

[Growled Member]

Just another day at the office for Microsoft.