US probing SAP, Carahasoft over potential price-fixing- Bloomberg

Investing.com– The U.S. government is probing German software firm SAP SE (NYSE:SAP) and product reseller Carahsoft over potentially overcharging government agencies for at least a decade, Bloomberg reported on Wednesday.

The Department of Justice has been looking into whether business software maker SAP illegally conspired with Carahsoft to fix higher prices on sales to the U.S. military and other government agencies, Bloomberg reported, citing federal court records filed in Baltimore. The investigation has been ongoing since at least 2022. 

Bloomberg said other technology firms were also under scrutiny over potential violations of the False Claims Act, including a unit of Accenture plc (NYSE:ACN). 

Carahsoft- a major vendor of software- saw its offices in Virginia raided on Tuesday by FBI agents and military investigators. 

The civil probe is investigating potential price rigging for more than $2 billion worth of SAP products used by the U.S. government since 2014, Bloomberg reported. 

SAP is Germany’s biggest firm, with the potential investigation providing a blow to the firm amid an ongoing rally in its shares. Carahsoft is one of the biggest private companies in the world, and is a major player in providing technology to government agencies. 

SAP had earlier this year agreed to pay over $200 million over bribery charges involving government officials from around the world.