Microsoft Hungary, Foreign Bribery, New York 2023

Microsoft Hungary, a subsidiary of Microsoft Corporation, has agreed to pay a criminal fine of more than $8.7 million to resolve a Foreign Bribery case in New York. According to the investigation, Microsoft Hungary participated in a bribery and bid rigging scheme in connection with the sale of Microsoft software licenses to Hungarian government agencies.

Beginning at least 2013 and continuing until at least 2015, senior executives and other employees of Microsoft Hungary falsified records to make it appear as though steep discounts were necessary to conclude deals with resellers who bid for the opportunity to sell Microsoft licenses to government customers. In reality, the savings were not passed on to the government customers, but were used by the resellers to pay bribes to Hungarian government officials.

The tainted deals resulted in at least $14,586,325 in profits to Microsoft Corporation. Microsoft Hungary entered into a nonprosecution agreement and agreed to pay a criminal fine of $8,751,795 to resolve the matter.

U.S. Attorney Geoffrey S. Berman praised the outstanding investigative work of the FBI. The case is being handled by the Complex Frauds and Cybercrime Unit of the U.S. Attorney's Office for the Southern District of New York.

Microsoft Hungary is a wholly owned subsidiary of Microsoft Corporation, a multinational technology company based in Redmond, Washington. The company has a significant presence in New York City, with several offices and data centers located throughout the state.

In a related matter with the Securities and Exchange Commission (SEC), Microsoft Corporation agreed to pay to the SEC disgorgement and prejudgment interest totaling approximately $16,565,151 for conduct including Hungary.

Defendant/respondent: Microsoft Hungary Számítástechnikai Szolgáltató és Kereskedelmi Kft.

Exact criminal charges: Violations of the Foreign Corrupt Practices Act (FCPA)

City and state: New York

Exact date: Not specified

Sentence or outcome: Microsoft Hungary agreed to pay a criminal fine of $8,751,795

Dollar amounts: $8,751,795 (criminal fine), $14,586,325 (profits from tainted deals), $16,565,151 (disgorgement and prejudgment interest)

Source: https://www.justice.gov/usao-sdny/pr/hungary-subsidiary-microsoft-corporation-agrees-pay-87-million-criminal-fine-resolve-0