Subj : US government probes SAP and other for overcharging it on softwar
To   : All
From : TechnologyDaily
Date : Wed Sep 25 2024 15:30:05

US government probes SAP and other for overcharging it on software use

Date:
Wed, 25 Sep 2024 14:28:00 +0000

Description:
SAP and Carahsoft have been accused of overcharging one of their most 
important clients  the US government.

FULL STORY
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German software giant SAP and Virginia-based product reseller Carahsoft 
Technology are under investigation in the US for allegedly conspiring to 
overcharge government agencies, including the US military. 

The longstanding investigation, which has been underway since 2022, is 
largely focused on SAPs alleged price-fixing on software and other services 
it sells to the government. 

US authorities could be looking into an estimated $2 billion in technology 
sales to the US government since 2014, highlighting the scale of the 
investigation. SAP accused of overcharging the US government 

The reason the investigation has hit the headlines this time is because of an 
FBI and military raid of Carahsofts offices in Reston, Virginia (via 
Bloomberg ). 

The company found itself in 45th place on the Forbes 2023 Largest Private 
Companies List after making $13 billion in revenue in 2022, however as a 
private company, the effects of the investigation and unknown. 

SAP, Germanys most valuable company, saw shares drop by 4% following the 
news, however this year alone theyre up 42%. 

Federal prosecutors had also been brought on board to force Carahsoft to 
produce communications, contracts, staff lists and other information related 
to its sale of SAP software and it obstinately refused to provide this basic 
information. 

 TechRadar Pro has asked both companies to comment on the ongoing 
investigation, but neither responded immediately. 

Carahsoft spokesperson Mary Lange told Bloomberg that the company is fully 
cooperating on this matter. 

This isnt the first time that the two companies have found themselves in hot 
water. Carahsoft has already paid out $75.5 million in a settlement relating 
to overcharging the government, while SAP agreed to a $220 million settlement 
with the US DOJ in January this year over bribery allegations with South 
African and Indonesian government officials. More from TechRadar Pro Check 
out the best productivity tools Weve made a list of all the best online 
collaboration software LinkedIn settles court case claiming it overcharged 
advertisers



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Link to news story:
https://www.techradar.com/pro/us-government-probes-sap-and-other-for-overcharg
ing-it-on-software-use


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