The European Commission has formally launched an investigation into SAP, a major software provider, to assess potential anti-competitive practices within the market for maintenance and support services related to its on-premises Enterprise Resource Planning (ERP) software across the European Economic Area. The announcement, made Thursday, signals a significant scrutiny of SAP’s business operations.
Alongside initiating the formal investigation, the Commission has adopted a preliminary assessment outlining key facts and detailing the competition law concerns. This assessment allows SAP the opportunity to propose commitments – essentially, corrective measures – aimed at addressing the identified concerns.
SAP’s ERP software provides essential functions for businesses, encompassing areas such as financial management, human resources and project management. This software can be deployed either on a customer’s own servers (on-premises) or through cloud-based solutions. SAP also offers maintenance and support services for its ERP software, providing regular updates and technical assistance. These services represent a competitive landscape, with other companies frequently offering alternative support options at more favorable commercial terms.
“Thousands of companies across Europe rely on SAP’s software for their operations and the associated maintenance and support services” stated EU Commission Vice-President Teresa Ribera. “We have concerns that SAP may have restricted competition in this crucial aftermarket, potentially hindering competitors and limiting choice and driving up costs for European customers”.
