EU Launches Probe into SAP's ERP Software Maintenance Practices
The European Commission has initiated a formal investigation into software behemoth SAP. The probe centers around suspicions that SAP may have hindered competition in the realm of maintenance and support services for its on-premise ERP software within the European Economic Area.
Thousands of companies across Europe utilizing SAP software and associated services could be impacted. The Commission worries that SAP's practices might stifle competition from third-party providers and constitute exploitative behavior towards customers.
SAP consistently prolongs the duration of the initial on-premise ERP licenses, making cancellation of maintenance and support services impossible. Customers are hindered from terminating unwanted services, leading to payments for unused licenses. SAP mandates that customers obtain all maintenance and support services for their entire SAP ERP software solely from SAP, obstructing the combination of services from diverse providers. SAP also imposes re-entry fees and retroactive fees for customers resuming maintenance and support services after a hiatus.
The investigation, with no set deadline for conclusion, will delve into these concerns. SAP has refuted the allegations but has closely cooperated with the European Commission, stressing compliance with competition rules. However, no specific steps taken by SAP to address competition concerns have been publicly disclosed.
The investigation is ongoing and can be tracked on the Commission's Competition Website under case number AT.40823. The outcome will ascertain if SAP's practices breach competition rules and influence the market for maintenance and support services in the European Economic Area.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
