US Probes SAP, Carahasoft Over Potential Price Fixing – Bloomberg By Investing.com

Investing.com — The U.S. government is investigating German software firm SAP SE (NYSE: ) and product reseller Carahsoft for potentially overburdening 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 set higher prices on sales to the US military and other government agencies, Bloomberg reported, citing federal court filings filed in Baltimore. The investigation has been ongoing since at least 2022.

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

Carahsoft, a major software vendor, had its offices in Virginia raided by FBI agents and military investigators on Tuesday.

The civil investigation is investigating potential price manipulation of more than $2 billion worth of SAP products used by the US government since 2014, Bloomberg reported.

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

SAP agreed earlier this year to pay more than $200 million over bribery allegations involving government officials around the world.