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The European Commission has launched a formal investigation to assess whether SAP has engaged in anticompetitive practices when it comes to maintenance and support services for its on-premise ERP software in European Economic Area (EEA).
The Commission said it believes SAP requires customers to seek maintenance and support services from SAP for all their SAP on-premises ERP software, which ultimately prevents customers from “mixing and matching” maintenance and support services from different suppliers at different price and support levels.
The Commission added it is also concerned that SAP prevents customers from terminating maintenance and support services for unused software licences; systematically extends the duration of the initial term of on-premises ERP licences, during which termination of maintenance and support services is not possible; and charges reinstatement and back-maintenance fees to customers who subscribe to SAP’s maintenance and support after a period of absence.
Further, the Commission believes that SAP may have restricted competition from third-party providers of maintenance and support services of SAP’s on-premises ERP software in the EEA.
“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,” said Teresa Ribera, the Commission’s Executive Vice President for Clean, Just and Competitive Transition, in a statement.
“This is why we want to have a closer look at SAP’s potentially distortive business practices, to make sure that companies that rely on SAP’s software can freely choose the maintenance and support services that best fits their business needs,” she added.
In launching its formal investigation, the Commission has adopted a preliminary assessment of its case to SAP and now invites SAP to address its concerns.
SAP has acknowledged in a statement that formal proceedings were happening, saying that its on-premise maintenance and support policies are “based on long-standing standards that are common across the global software sector”.
“SAP believes that its policies and actions are fully in line with competition rules,” the German company stated. “However, we take the issues raised seriously and we are working closely with the EU Commission to resolve them.”
The company continued to say that it is “committed to open competition”.
