.September 25, 2024 03:15:10 AM

The U.S. Department of Justice is investigating SAP SE and Carahsoft Technology Corp. for potential price-fixing practices in the software and IT sectors. The probe focuses on whether the companies engaged in anti-competitive practices that artificially inflated prices for their products and services.

The DOJ is examining whether SAP and Carahsoft collaborated to fix prices for government contracts and commercial customers, potentially violating U.S. antitrust laws designed to promote fair competition.

Both SAP and Carahsoft are major contractors for the U.S. government, and if proven true, price-fixing allegations could lead to fines, penalties, and restrictions on future government contracts.

Price-fixing claims could damage SAP’s reputation as a leading enterprise software provider and impact its profitability and growth prospects in the U.S. market.

Carahsoft, a key distributor for software companies in government procurement, could face substantial penalties and limitations on its ability to compete for federal contracts if found guilty.

Investors are cautious about the potential impact of the investigation on SAP’s stock performance, while Carahsoft may struggle to maintain trust with clients if the outcome is damaging.