Microsoft to Pay $25 Million to Settle Foreign Bribery Probe
July 22 2019 - 12:28PM
Dow Jones News
By Dylan Tokar
Microsoft Corp. agreed to pay $25 million to settle an
investigation into potential violations of a law prohibiting the
bribery of foreign government officials, the U.S. Securities and
Exchange Commission said Monday.
The computer behemoth settled the alleged Foreign Corrupt
Practices Act violations by four Microsoft subsidiaries in separate
agreements with the SEC and the U.S. Department of Justice and the
Securities and Exchange Commission.
Microsoft, as part of its settlement with the SEC, neither
admitted nor denied the misconduct described by the agency.
In an internal email to company employees on Monday that was
shared with The Wall Street Journal, Microsoft President Brad Smith
said the misconduct involved a small number of employees that were
no longer with the company.
"We were deeply disappointed and embarrassed when we first
learned about these events several years ago, and we hope that all
of the steps we've since taken, including today's settlement, send
a strong message," Mr. Smith said.
The SEC and Justice Department investigation found that a
Microsoft subsidiary in Hungary had used discounts on software
licenses to fund bribes intended for foreign officials, the
government said. The Hungarian subsidiary has entered into a
non-prosecution agreement with the Justice Department, according to
the agency.
In Saudi Arabia and Thailand, two other Microsoft subsidiaries
provided illegal gifts and travel benefits to government officials
through a slush fund, according to the SEC. A Turkish subsidiary
illegally provided excessive discounts to a third party without
properly recording the transaction, the agency said.
The Wall Street Journal last year reported that U.S.
authorities, including the SEC and the Justice Department, were
probing Microsoft's software sales in Hungary over potential
bribery and corruption allegations.
Write to Dylan Tokar at dylan.tokar@wsj.com
(END) Dow Jones Newswires
July 22, 2019 12:13 ET (16:13 GMT)
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