SAP to offer concessions to the EU over antitrust probe into ERP support practices

Source: CIO Magazine

SAP is preparing to submit formal concessions to the European Commission to resolve an ongoing antitrust inquiry focused on its software licensing and support practices. The investigation, initiated in September, suggests that SAP may be harming competition in the maintenance service market by imposing restrictive practices on customers. The proposed remedies aim to mitigate these concerns, allowing customers more freedom in selecting support providers and potentially avoiding hefty fines that could exceed $3.7 billion.

The Commission’s assessment flagged specific practices that seem to breach competition rules, including restrictions on customers using rival support solutions and fees that erase purported savings. This inquiry follows years of complaints from customers regarding SAP’s licensing strategies. Notably, it focuses on legacy systems and the timing is critical as standard support ends for many SAP applications in 2027, which raises stakes for businesses undergoing transition to alternative providers. If the concessions are approved, they could significantly impact SAP’s customer relations and competitive landscape in the enterprise software market.

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