U.S. Probes Microsoft, Partners Over Bribery Claims
Source: Wall Street Journal
Federal regulators are investigating Microsoft Corp.'s relationship with business partners that allegedly bribed foreign government officials in return for software contracts, according to people familiar with the matter.
Lawyers from the U.S. Justice Department and the Securities and Exchange Commission are examining kickback allegations made by a former Microsoft representative in China, as well as the company's relationship with certain resellers and consultants in Romania and Italy, these people said.
The investigation is in a preliminary phase, according to people familiar with the probe, and the government hasn't accused Microsoft or any of its business associates of wrongdoing. Such investigations can end with no charges being filed.
... The tipster, who worked to land potential new business, alleged that an executive of Microsoft's China subsidiary instructed the tipster to offer kickbacks to Chinese officials in return for signing off on software contracts, according to people familiar with the matter and people briefed on the internal probe. The tipster, whose contract ended in 2008, was also involved in a labor dispute with Microsoft in China, they said.
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