EU probes SAP over anti-competitive ERP support practices

The European Comission is investigating potential anti-competitive practices in aftermarket services SAP provides for its on-premise ERP software, a move prompted by years of industry claims that the company abuses its dominant position in maintenance and support.

According to the announcement, four practices are at issue: requiring customers to buy the same type of support for all SAP on-premises ERP software, blocking mix and match with other providers; blocking termination of support for unused licenses and forcing customers to pay for unwanted services; extending the initial license term during which termination of support is not possible; and charging reinstatement or back-maintenance fees equal to what customers would have paid if they had never left SAP.

The Commission says it is concerned that SAP may have restricted competition from third-party providers and imposed unfair trading conditions on SAP customers. An in-depth, high-priority investigation will now proceed, SAP published a statement acknowledging the proceedings and arguing its policies are industry-standard and compliant, while calling for a quick and fair resolution.