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SEC probes Yahoo's response to billion-user hack
The SEC has this thing about companies keeping secrets, especially if those secrets could hurt investors. Yahoo, meanwhile, suffered two significant hacks in recent years, but dragged its feet in telling everyone about them. So it should be no surprise that regulators are now apparently investigating the moribund company to determine any wrongdoing.
WSJ: Microsoft, unnamed business partners being investigated by US government over foreign bribery
Microsoft is under investigation by United States regulators over software bribery claims involving foreign government officials, the Wall Street Journal reports, citing "people familiar with the matter." The piece says both the US Justice Department and the Securities and Exchange Commission are looking into the Redmond, Washington-based software giant, investigating allegations of kickbacks in China, and its "relationship with certain resellers and consultants in Romania and Italy." Though neither the Justice Department nor the SEC would confirm the investigation, Microsoft told the WSJ, "We sometimes receive allegations about potential misconduct by employees or business partners. We cooperate fully in any government inquiries," without confirming the situation. With regard to China, Microsoft's allegedly being investigated for kickbacks that its Chinese subsidiary is said to have paid for software contracts in the region. In Romania the situation is said to be similar to that in China, but in Italy it's said to involve customer loyalty plans. Update: Microsoft further outlines its response to the allegations here (though still without confirming whether or not the investigations are taking place).
FTC considering new settlement process so companies can't deny wrongdoing
Google recently paid the FTC $22.5 million and Facebook was ordered by the commission to change the way it handles data, but you might be surprised to hear that both companies did nothing wrong. Well, not exactly, but by settling their privacy violation cases, the internet giants are entitled to deny any misconduct. The New York Times reports that J. Thomas Rosch, a commissioner who voted against both settlements, feels that current rules will invite "denials of liability in every case in the future." Rosch wants the policy changed so companies can't deny responsibility when settling, much like the way the SEC handles similar indiscretions. Most of his colleagues weren't in a hurry to back his opinions, but three did say that refining the process could "avoid any possible public misimpression" of how the FTC strikes such deals. The commission is expected to look at the issue in the near future, but until then, we're sure you're more than able to separate the reality from the legalese.
