Tech

Microsoft pays big fine for illegal trade with Russia

Microsoft is accused of selling its software to Russian companies as the war in Ukraine heats up and sanctions continue to scourge on Russia.

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Russia’s invasion of Ukraine has implications for the global economy. In Europe alone, the ban on imports of certain types of products from Russia has created a shortfall of €91.2 billion for the Russian economy. The restrictions against the Kremlin are just as severe on the other side of the Atlantic. Apple can, for example, no longer sell its products to Muscovites, who must fall back on an ersatz iPhone, the AYYA T1. A company, and not the least, would not have played the game, however.

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Microsoft is accused of breaking the law 1,339 times by selling software and services to embargoed companies and individuals. Rather than go to trial, the leaders of the Redmond firm preferred to recognize their wrongs and paya fine of $3.3 million. A very modest amount which will undoubtedly have convinced the CEO, Satya Nadella, not to defend himself in court for facts that took place from 2012 to 2019.

Microsoft sold its products to individuals blacklisted by Americans

During this period, however, the sales representatives of the Irish and Russian subsidiaries would have sold software licenses and associated services to specifically designated national users — who were prohibited from selling this type of product — originating from Cuba, Iran, Syria, and from Russia. Nationals of the former USSR represent the bulk of the contingent of this blacklist, with no less than 1252 illegal sales (or purchases).

The amount of the fine that the company must pay could have amounted to $404.6 million; the US financial watchdog found that despite its “reckless disregard for US sanctions”, the firm had so far shown goodwill in cooperating with its investigators. It is not impossible that Microsoft will one day find itself in the spotlight again for exactly the same reasons. Many Russian media claim that the Redmond company, or even Intel, have started selling their products to them again. Info or intox ? Only the future will tell us.

Source : Tech Radar

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