Global Expansion Efforts of Movie Studios, Walmart Under Federal Scrutiny
American companiesâ€™ global expansion efforts have long been subject to the anti-bribery provisions of the federal Foreign Corrupt Practices Act (FCPA), but the potential implications of the law on the countryâ€™s media & entertainment industry â€” as well as the worldâ€™s largest retailer â€” have suddenly been brought to the fore.
On Tuesday, Reuters reported that the Securities and Exchange Commission (SEC) has begun investigating whether illegal payments have paved movie studiosâ€™ road into China for theatrical productions and exhibitions. So far, the SEC is scrutinizing activities of at least three studios in what has been viewed as a crucial new market for Hollywood â€” and a success story for the Obama administration.
More on the studio investigation at The New York Times, which published a report on Saturday that alleged widespread bribery among Walmartâ€™s retail operations in Mexico during the previous decade. While Walmart has reportedly disclosed results of an internal investigation to the SEC and the Department of Justice, the Times report prompted a sell-off of Walmart shares on Monday, and the loss of as much as $9.9 billion in market value for the company (via Emerging Money/NASDAQ). Walmart has responded by detailing its current efforts at ensuring FCPA compliance.