SAP Faces EU Antitrust Probe Over Business-Management Software — 2nd Update

By Mauro Orru

The European Union launched a formal investigation into Germany's SAP, saying the company might have stifled competition for maintenance and support services of its popular business-management software.

The European Commission, the EU's executive arm, said its probe would focus on possible anticompetitive practices related to SAP's enterprise resource planning software that companies use to oversee and streamline operations in areas like finance, sales, human resources, supply chain and procurement.

"Thousands of companies across Europe use SAP's software to run their business, as well as its related maintenance and support services," EU competition chief Teresa Ribera said in a statement. "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."

ERP software is generally provided through the cloud, when it resides on a remote, third-party server that companies access through a subscription. However, the software can also be provided on-premises, when it is installed in a company's data center.

EU officials said SAP requires customers to seek maintenance and support services from SAP itself for the company's on-premises ERP software, potentially restricting competition for third-party providers that offer such services at different prices.

SAP confirmed in a statement that the EU had opened formal proceedings involving its on-premise maintenance and support policies, which it said were based on common standards across the software industry.

The company said it remains committed to open competition and doesn't expect a material impact on its financial performance from the investigation. SAP shares in Frankfurt slipped more than 2% after the EU announced its probe.

The EU commission said SAP prevents clients from terminating maintenance and support services for unused software licenses, meaning they might be paying for unwanted services. In addition, officials said the company extends the length of the initial term of on-premises ERP licenses, during which it isn't possible to terminate maintenance and support services.

SAP also charges reinstatement and back-maintenance fees to clients who subscribe to its maintenance and support following an absence period, the EU said, noting that those fees sometimes correspond to the amount that businesses would have paid if they had stuck with SAP all along.

The commission said SAP can submit so-called commitments, or remedies, in a bid to address competition concerns and bring the investigation to a close.

"SAP believes that its policies and actions are fully in line with competition rules," the company said. "However, we take the issues raised seriously and we are working closely with the EU commission to resolve them."

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

September 25, 2025 08:16 ET (12:16 GMT)