European Commission Opens Investigation into SAP's Maintenance and Support Practices

You may have seen that the European Commission has opened a formal investigation into SAP's maintenance and support services for its on-premises Enterprise Resource Planning (ERP) software, examining whether the company's practices may be distorting competition in the European Economic Area.

 

The Commission has expressed concerns that these practices may restrict competition from third-party maintenance providers and constitute unfair trading conditions for SAP's customers. The investigation will examine whether SAP holds a dominant position in the aftermarket for maintenance and support services of its on-premises ERP software.

 

The investigation focuses on four specific practices related to SAP's on-premises ERP maintenance and support services. These include requirements for customers to obtain all maintenance services exclusively from SAP under uniform pricing conditions, restrictions on terminating services for unused software licences, systematic extensions of initial licence terms and charges for reinstatement and back-maintenance fees for customers returning after a period of absence.

 

In response, SAP has stated that the areas under review relate to "on-premise maintenance and support policies, which are based on long-standing standards that are common across the global software sector." The company also maintains that its policies and actions are fully compliant with competition rules whilst acknowledging it takes the issues raised seriously.

 

SAP has indicated it is working closely with the EU Commission to resolve the matter, reaffirming its commitment to open competition as "a major European player in a very dynamic global industry” and expressing trust that the Commission will aim for a quick and fair conclusion to the proceedings.

 

As a user group, we will continue to monitor the investigation and keep members informed with updates as necessary.