Microsoft fined millions of dollars for selling software to Russian company

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Microsoft has agreed to pay more than $3 million to settle potential civil liability for 1,339 sanctions violations believed to have sold products and services to individuals and businesses in countries like Russia.

Over 1,300 incidents occurred between July 2012 and April 2019, in which Microsoft seized software licenses, activated software licenses, and related services from servers in the United States and Ireland under “specially designated It allegedly sold to “citizens” and blocked users in Cuba, Iran and Syria. Crimea region of Russia, Ukraine.

Following a settlement of $624,013 by the Bureau of Industry and Security (BIS), Microsoft and its Irish and Russian subsidiaries have been sued by the Bureau of Foreign Assets Control (OFAC (opens in new tab)) US Department of the Treasury. BIS later issued him $276,382 in credit, bringing Microsoft’s net settlement to nearly $3.3 million across both parties.

Microsoft sales to banned Russian companies

Over the course of almost seven years, the tech giant reportedly sold $12.1 million worth of services to banned customers.

1,252 Russian sales accounted for almost 94% of all instances. In addition, 54 cases occurred in Cuba, 30 in Iran, and he three in Syria.

Despite fines of up to more than $404.6 million, OFAC found that despite Microsoft’s voluntary self-disclosure of apparent violations and its “reckless disregard for U.S. sanctions,” the case continues. Given the non-malicious nature of , we have determined that less than 1% is sufficient. ”

It’s unclear if Microsoft has reconsidered its business practices after Russia’s invasion of Ukraine, but Russian media claim that Microsoft (and Intel) resumed some operations in the country earlier this year.

A Microsoft spokesperson said: tech radar pro:

“Microsoft takes export control and sanctions compliance very seriously, so after learning of several employee screening failures and violations, we voluntarily disclosed them to the appropriate authorities. We are cooperating fully with the investigation and are satisfied with the settlement.”

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