2024-09-25 19:21:29
The US Department of Justice is investigating the business dealings of software developer SAP with Carahsoft Technology. They are suspected of price fixing. The stock market reacted promptly.
The US Department of Justice is taking a close look at the business dealings of SAP and the IT reseller Carahsoft. The investigations into possible price fixing have been ongoing since at least 2022, according to documents filed with the federal court in Baltimore. The department is investigating whether SAP and Carahsoft illegally colluded in business with the US military and other government agencies over the course of a decade to obtain excessive prices from the US.
An SAP spokeswoman declined to comment when asked by the news agency Bloomberg. SAP, based in Walldorf, is a major supplier of programs for accounting, human resources and supply chain management.
Since its founding in 2004, Carahsoft has become a dominant player in government technology procurement. The company generated $11 billion in revenue last year and employed more than 2,400 people. Of all IT vendors, only PC maker Dell does more business with the U.S. federal government than Carahsoft, according to Bloomberg.
According to informed sources, the FBI searched the reseller’s offices on Tuesday. According to a Carahsoft spokeswoman, the search was part of an investigation into a company with which Carahsoft had done business in the past. She did not say whether this was SAP.