The European Commission has formally launched an investigation into SAP, a major software company, to assess potential distortions of competition 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 heightened scrutiny of SAP’s business practices.
Alongside initiating the investigation, the Commission has adopted a preliminary assessment outlining key facts regarding the case and detailing the identified competition concerns. As part of this process, SAP has the opportunity to submit binding commitments aimed at addressing those concerns.
SAP’s portfolio includes ERP software that supports vital business functions such as financial management, human resources and project management. This software can be deployed either on customer-managed servers (on-premises) or through cloud-based solutions. SAP also provides maintenance and support services for its ERP software, delivering regular updates and technical assistance. These services are often provided by other companies, creating a competitive landscape where alternative providers frequently operate under more favorable commercial terms.
“Thousands of companies across Europe rely on SAP 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 within this essential after-market, potentially hindering competitors and limiting choice and potentially increasing costs for European customers.
The investigation will examine whether SAP’s actions have created barriers to entry for competitors and whether they have unfairly disadvantaged alternative providers in the provision of crucial support and maintenance services for SAP’s on-premises ERP software.