The US Securities and Exchange Commission is intensifying its efforts to combat corruption in the tech industry by investigating relationships between publicly traded companies and their international Business partners. Under the Foreign Corrupt Practices Act, the SEC is scrutinizing whether tech companies offered anything of value to non-US officials in exchange for business opportunities.
These inquiries, which began earlier this year, are being conducted by the SEC’s FCPA unit and focus on companies’ dealings with intermediaries in regions such as Asia, Latin America, and Africa. While the companies under investigation have not been named and are not accused of any wrongdoing, the SEC has the authority to impose fines or penalties on individuals and companies found to have violated the FCPA.
The SEC’s Fort Worth office, known for its involvement in high-profile corruption investigations, has spearheaded these inquiries. Past cases, including a $144 million settlement with Walmart Inc. and an investigation into Oracle Corp., showcase the agency’s commitment to enforcing anti-corruption laws within the tech sector.
In a recent case, SAP SE was accused of using intermediaries to secure contracts with government clients, leading to a $220 million settlement with the SEC and Justice Department. These actions highlight the vulnerabilities within the tech industry, where reliance on third-party partners can expose companies to potential regulatory scrutiny.
As the SEC continues its enforcement sweep across the tech supply chain, companies are urged to maintain transparency in their international business dealings to avoid legal repercussions. The ongoing investigations underscore the importance of compliance with anti-corruption laws and the potential consequences of non-compliance in the global business landscape.
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