US Investigates SAP and Carahasoft for Possible Price Fixing – Bloomberg

The U.S. government is investigating German software company SAP SE and product reseller Carahsoft for potentially overcharging government agencies for at least a decade, according to reports.

The Department of Justice is examining whether SAP conspired with Carahsoft to artificially inflate prices on sales to the U.S. military and other government entities. This investigation has been underway since at least 2022, as indicated by federal court records.

Additionally, other technology firms, including a unit of Accenture plc, are reportedly being scrutinized for possible violations of the False Claims Act.

Carahsoft, a prominent software vendor, faced a raid at its Virginia offices on Tuesday by FBI agents and military investigators.

The civil investigation is looking into possible price manipulation concerning more than $2 billion worth of SAP products utilized by the U.S. government since 2014. This potential inquiry could have significant repercussions for SAP, which is Germany’s largest firm, especially as its shares have been experiencing an upswing. Carahsoft is recognized as one of the biggest private companies globally and plays a significant role in supplying technology to government agencies.

Earlier this year, SAP agreed to pay over $200 million to settle bribery charges linked to government officials from various countries.