US Probes Microsoft, Partners Over Bribery Claims

Federal regulators are investigating Microsoft'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 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.

Microsoft has addressed allegations that its partners are being investigated by the U.S. government for engaging in illegal activity, saying that it will “cooperate fully in any government inquiries.”

Whether Microsoft actually gets prosecuted for bribery relating to contracts in China, Romania and Italy may hinge on the "something of value" the software giant may have bestowed on an executive or official to influence his or her discharging of public or legal duties.