The US Foreign Corrupt Practices Act, an anti-bribery law, prohibits US-linked companies from making payments to foreign public officials to obtain any business advantage. Under the law, public officials can include employees of state-owned enterprises, which are prevalent in China, The Wall Street Journal reported.
The company takes such allegations seriously and expects employees to adhere to local and national laws and high ethical standards, said a Cisco spokesman in a statement on Wednesday (local time).
He declined to comment further on the investigation but said Cisco didn't expect it to have a material adverse effect on its consolidated financial position.
Meanwhile, China's antitrust regulator this year approved a deal negotiated by Cisco to acquire Acacia Communications Inc., a Maynard, Massachusetts-based competitor. The regulator outlined several conditions to the deal, including ones that require Cisco to fulfil existing contracts with Chinese clients and keep commercial terms unchanged, The Wall Street Journal reported.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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