Microsoft Settles Bribery Charges By Hungarian Division With US Justice Dept. - President

Microsoft announced a settlement of bribery charges against former employees in Hungary with the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC), company President Brad Smith told employees on Monday

WASHINGTON (UrduPoint News / Sputnik - 22nd July, 2019) microsoft announced a settlement of bribery charges against former employees in Hungary with the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC), company President Brad Smith told employees on Monday.

"Our Hungarian subsidiary has entered into a Non-Prosecution Agreement, or NPA, with the DOJ and we have agreed to a Cease and Desist Order with the SEC," Smith said in an email message. "This follows Microsoft's cooperation with a multi-year government investigation, reported previously, into potential violations of the FCPA [Foreign Corrupt Practices Act] between 2012 and 2015.

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The Foreign Corrupt Practices Act prohibits US firms from using bribes to win business contracts overseas.

The Justice Department determined that a Microsoft Hungary executive and other Hungarian employees "falsely represented" to Microsoft it needed discounts to secure business deals - discounts that were not passed on to customers but instead used "to fund improper payments."

The payments were made from 2013 to 2015 and the Hungarian employees involved are no longer with Microsoft, Smith said.