Image: mixmagic/Adobe Stock
SAP responded that it believes its policies and actions follow industry norms. “However, we take the issues raised seriously and we are working closely with the EU Commission to resolve them.”
The European Commission has opened an antitrust investigation into SAP, Europe’s largest software maker, examining whether its maintenance and support policies for business management tools may restrict competition.
The inquiry focuses on SAP’s Enterprise Resource Planning (ERP) system, which companies rely on for finance, human resources, and supply chain operations. SAP provides cloud-based and on-premises versions of its software, though the Commission is zeroing in on the on-premises model, which is hosted on customers’ servers.
Regulators suspect the company could be limiting customer flexibility by discouraging them from using alternative providers for support services. According to the Commission, its preliminary assessment highlighted numerous practices that could limit competition, including:
Teresa Ribera, the EU’s executive vice-president for Clean, Just and Competitive Transition, expressed her concerns in a statement: “Thousands of companies across Europe use SAP’s software to run their business, as well as its related maintenance and support services. We are concerned that SAP may have restricted competition in this crucial aftermarket, by making it harder for rivals to compete, leaving European customers with fewer choices and higher costs.”
In response, SAP confirmed the proceedings and stressed that the company believes its policies follow industry norms.
“These proceedings address some areas of our on-premise maintenance and support policies, which are based on long-standing standards that are common across the global software sector,” the company said. “SAP believes that its policies and actions are fully in line with competition rules. However, we take the issues raised seriously and we are working closely with the EU Commission to resolve them.”
The German tech giant also sought to reassure investors and customers, adding: “We do not anticipate the engagement with the European Commission to result in material impacts on our financial performance.”
News of the investigation pressured SAP’s share price, which slipped roughly 2% in Thursday trading, according to CNBC. With a market capitalization of nearly €282 billion ($331 billion), SAP remains one of Europe’s most valuable companies.
If wrongdoing is established, the Commission could levy penalties up to 10% of a company’s worldwide annual revenue — a potential multibillion-euro fine in SAP’s case. SAP reported revenues of about €34.2 billion ($39.9 billion) in 2024.
The Commission said the investigation will be treated as a priority, but emphasized that opening proceedings does not mean SAP has broken the law. Antitrust investigations in the EU typically take months or even years, depending on complexity and cooperation. For now, SAP has the option of offering commitments to address the Commission’s concerns and potentially avoid further penalties.
The European Commission’s enforcement of the Digital Markets Act is facing resistance from Apple. See how the company’s appeal might influence future regulatory battles in Europe.
Aminu Abdullahi is a B2C and B2B technology and finance writer with more than six years of experience covering enterprise IT, cybersecurity, cloud computing, artificial intelligence, fintech, business software, and emerging technologies. His work has appeared in publications including TechRepublic, eWEEK, Channel Insider, Geekflare, Enterprise Networking Planet, eSecurity Planet, CIO Insight, and Webopedia. With a technical background in computer science, he specializes in translating complex technology topics into clear, accessible content for business leaders and decision-makers.
