Federal regulators are investigating Microsoft for allegedly bribing foreign governments for favor in software contracts. “Lawyers from the 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,” sources familiar with the allegations, tellThe Wall Street Journal, which broke the story earlier today.
An anonymous tipster alleges that Microsoft’s China division instructed him to offer kickbacks in exchange for signing off on software contracts. To further complicate the allegations, the tipster was also involved in a labor dispute with the software giant. The tipsters contact with Microsoft ended in 2008.
“Like every large company with operations around the world we sometimes receive allegations about potential misconduct by employees or business partners,” John Frank, Microsoft’s vice president and deputy general counsel, tells The Journal
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