Microsoft FCPA settlement Archives - Corruption, Crime & Compliance

18 Aug, 2019

Episode 104 — Deep Dive into Microsoft FCPA Settlement

On July 22, 2019, Microsoft finally resolved its FCPA enforcement action with a whimper. Notwithstanding prior suggestions that Microsoft’s investigation uncovered global conduct, Microsoft’s liability focused primarily on Microsoft’s conduct in Hungary. Even with the tailored settlement agreement, DOJ and the SEC reiterated robust expectations surrounding third-party distributor networks, particularly in the software industry. To resolve a lengthy six and one-half year investigation, Microsoft entered into a non-prosecution...

General

28 Jul, 2019

Five Lessons for Third-Party Distributor Risk Management from Microsoft FCPA Settlement (Part III of III)

The Microsoft FCPA settlement, while not significant in the total penalty of approximately $25 million, provides some important instructions concerning distributor and re-seller risks and mitigation strategies. Here are five important lessons learned: Discount Controls and Customer/End User Pricing: Microsoft agreed to provide significant discounts based on false justifications. Microsoft failed to confirm the justification for the discounts that permitted the bad actors to create...

General

25 Jul, 2019

Microsoft FCPA Settlement Underscores Third-Party Risks (Part II of III)

Microsoft’s bribery and controls violations reflect significant risks facing companies that rely on distributor and reseller networks to sell their products. Companies often enter and operate in emerging markets through complex networks of third parties. Such distribution systems create significant anti-corruption risks that have to be managed and mitigated. It is worth taking the time to examine the precise outlines of the conduct at issue...

General

25 Jul, 2019

Microsoft Pays DOJ and SEC $25 Million to Resolve FCPA Violations (Part I of III)

Microsoft finally resolved its FCPA enforcement action with a whimper. Notwithstanding prior suggestions that Microsoft’s investigation uncovered global conduct, Microsoft’s liability focused primarily on Microsoft’s conduct in Hungary. Even with the tailored settlement agreement, DOJ and the SEC reiterated robust expectations surrounding third-party distributor networks, particularly in the software industry. To resolve a lengthy six and one-half year investigation, Microsoft entered into a non-prosecution agreement...