EU Investigates SAP Over Anticompetitive Practices

The European Commission has launched a formal investigation into SAP, aiming to determine whether the company is engaging in practices that limit competition in the on-premise software maintenance and support market. This is the first antitrust case opened by Brussels against SAP.

What the Investigation Covers

The inquiry focuses on SAP’s policies around support and maintenance for its on-premise ERP software. Specifically, the Commission is looking into whether SAP:

• Restricts customers from choosing other support providers.
• Enforces unfair commercial terms.
• Charges steep fees to resume support after cancellation.

Key practices under scrutiny include:

• Forcing customers to buy support exclusively from SAP, with no “mix and match” options allowed.
• Blocking customers from canceling maintenance on unused software licenses.
• Automatically renewing licenses in ways that make it difficult to end support early.
• Charging high reactivation fees that match what the customer would’ve paid if support hadn’t been interrupted in the first place.

Commissioner Teresa Ribera stated that these types of practices could leave European customers with fewer choices and higher costs.

SAP’s Response

SAP has denied the allegations, saying its policies are “fully aligned with competition laws” and follow long-established standards in the global software industry.

The company also emphasized its commitment to work closely with the European Commission to address the issue, and said it doesn’t expect any major financial impact from the investigation.

The Tech Market Context

While SAP continues to push toward cloud-based services, it still earns a significant chunk of revenue from traditional on-premise software and support. In 2024, SAP brought in €11.3 billion from software support, out of a total revenue of €34.2 billion.

Alongside Oracle, SAP is one of the world’s top ERP providers, giving it a strong position in the European market. That dominance means any change to its support policies could have a ripple effect across the sector.

This case also highlights a broader EU trend: tightening oversight of digital markets, with a focus on curbing abusive practices—even when they come from European tech giants.

Possible Effects for Customers and the Market

If the Commission finds wrongdoing and forces SAP to revise its policies, companies using its software could see several benefits:

• More freedom to choose third-party support providers.
• Lower maintenance costs by removing restrictive fees and penalties.
• Easier cancellation of support for unused software licenses, without extra charges.

That said, there could be short-term risks as well:

• Contract uncertainty—some companies might delay renewal or migration decisions while they wait for clarity.

• Sudden changes in SAP’s support policies that require renegotiating contracts.

• Rethinking cloud migration plans if SAP tweaks its pricing or support structures.

For SAP’s competitors and third-party support firms, the investigation could be a big opportunity. If the market opens up, they might gain ground and grow their share.

SAP’s stock dropped nearly 2% following news of the investigation—a sign of how closely the market is watching.

The EU’s case against SAP marks a key moment in how Europe regulates big tech. If anticompetitive behavior is confirmed, SAP will likely have to change course, which could benefit customers and help drive more competition in the software support space.