The Department of Justice and the Securities and Exchange Commission are looking into allegations that the company’s software was sold to organizations in Hungary at discounted prices, who then went on to sell them to government agencies at the full price.
The US authorities are investigating the possibility of government officials accepting bribes for these deals.
Microsoft is said to be cooperating with the investigation. The company is reported to have fired four employees in connection with the investigation and ended ties with four business partners in Hungary for policy violations.
There have been similar investigations into Microsoft’s business partnerships in countries such as Russia, China and Pakistan over any alleged payment of bribes or other favors.
Microsoft was in the news earlier this week when it disclosed that it prevented cyberattacks by Russian hackers aimed at Senate members. The stock is up 26% so far this year.
Related: Microsoft crackdown uncovers more Russian cyber-attacks