The U.S. Department of Justice (DOJ) is investigating German software company SAP and Carahsoft Technology for allegedly conspiring to overcharge government agencies over the past decade, according to a report by Bloomberg News.
The investigation, which began in 2022, focuses on whether SAP and Carahsoft worked together to inflate prices on IT solutions sold to the U.S. military and other government entities. SAP has generated €2.7 billion in revenue from the United States during Q2 2024. SAP does not reveal its revenue from Government agencies. The United States is the largest market for SAP.
The investigation gained traction when federal agents searched Carahsoft’s Washington-area offices earlier this week. A Carahsoft representative told Bloomberg that the probe is related to a third-party company that Carahsoft had previously done business with.
This is not SAP’s first legal issue with the U.S. government. Earlier this year, SAP agreed to pay $222 million to settle a separate case involving bribery schemes in seven countries. The ongoing DOJ investigation could lead to significant legal and financial repercussions for both SAP and Carahsoft, especially if evidence of price-fixing or fraud is uncovered.
