Investing.com– The U.S. government is investigating German software company SAP SE (NYSE:) and product reseller Carahsoft for overcharging government agencies for at least a decade, Bloomberg reported Wednesday.
The Justice Department is investigating whether business software maker SAP illegally conspired with Carahsoft to fix higher prices for 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 companies are also under scrutiny for possible violations of the False Claims Act, including a unit of Accenture plc (NYSE:).
Carahsoft, a major software vendor, was raided by FBI agents and military investigators at its Virginia offices on Tuesday.
The civil investigation focuses on possible price manipulation of more than $2 billion worth of SAP products used by the U.S. government since 2014, Bloomberg reports.
SAP is Germany’s largest company, and the potential investigation is a blow to the company amid an ongoing rally in its stock. Carahsoft is one of the world’s largest private companies and is a major player in providing technology to government agencies.
Earlier this year, SAP agreed to pay more than $200 million to settle bribery allegations against government officials around the world.
