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Ericsson Pays A Fine Of $1.1 Billion For Clearing Up Its Corruption Charges

Ericsson Pays A Fine Of $1.1 Billion For Clearing Up Its Corruption Charges

Many tech organizations have been a part of the corruption scandals before but now, they have all taken the straight path. The most recent is Ericsson that has settled its charges of corruption in countries like Vietnam, China, and Saudi Arabia by paying a fine of $1.1 Billion to the US Justice Department and SEC. The company has been found to be extensively carrying out corruption activities to help mount some revenue. The firm had been alleged of violating the Foreign Corrupt Practices Act from 2000 to 2016 by paying the officials and land customers, forging its records, and also failing to use rational accounting controls. However, the SEC has fined Ericsson with the enticement that took place between 2011 and 2017.

The settlement has left the telecom company free of all the bribery and criminal convictions that would have otherwise led to authorized and other stiff penalties. Its Egyptian branch has been found to be innocent in terms of violating the FCPA. The company will be paying approximately $520.6 Million to the DOJ and the remaining $539.9 Million to the SEC. On the other hand, other companies like HP have had to pay tens of millions to settle down smaller bribery charges. The charges of corruption are completely baseless as only a few executives were included and not the entire company. However, the company has confirmed that it will be working on its ethics and monitoring systems. Ericsson plans to bounce back and use the available funds to make the settlement. The company is adamant that it might give a shoulder-to-shoulder fight in case of companies with sloppy anti-corruption policies.

Parallelly, at the beginning of November 2019, Ericsson and SK Telecom had signed a commercial agreement wherein their basic goal was to turn on a Cloud Packet Core in the operator’s commercial 5G core network. The deal focuses on the current 5G core network transformation project and also will help SK Telecom advance its network performance and user experience. The Cloud Core portfolio will help service providers to smoothly switch to 5G Core standalone architecture.

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