DoJ accuses EMC of kickbacks, overcharging

This is a pretty interesting case.  Not just because I feel overcharged, either.  It sounds like the federal government is going after the Channel.  It seems the feds have reached the conclusion that if a value added reseller (consultant or system integrator) adds no real value but simply promotes the product paying the highest “alliance benefits” – then that amounts to taking a kickback. 

You know … as if a record label were to pay a DJ (remember those?) money for extra spins of song that wasn’t really that good (like that one by Britney Spears) just so they could make more sales. 

So is the Channel just one big lump of payola? 

DOJ allegations against EMC focus on kickbacks, overcharges

The U.S. Justice Department believes that EMC Corp. gave kickbacks to federal IT consultants and overpriced hardware, software and technology services it sold to the government beginning in the late 1990s….

The government’s complaint asserts that these alliance relationships
and the resulting alliance benefits paid by EMC amount to kickbacks and
undisclosed conflict of interest relationships,

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Published in: on March 5, 2009 at 4:10 pm  Leave a Comment  

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