BRUSSELS: The European Commission has initiated an antitrust investigation into German software giant SAP over concerns about potential competition distortion.
This probe focuses on whether SAP’s business practices have made it harder for rival companies to compete effectively in the market.
EU antitrust chief Teresa Ribera expressed concern that these practices could leave European customers with fewer choices and higher costs.
The investigation specifically targets software licensed by SAP known as Enterprise Resource Planning, which manages firms’ business operations.
The commission has identified four specific SAP practices that raise competition concerns, including restrictions on terminating maintenance services.
One key issue involves customers being unable to stop maintenance and support services for unused software licenses, potentially forcing payments for unwanted services.
Ribera emphasised the need to examine SAP’s business practices to ensure companies can freely choose maintenance services that fit their needs.
SAP now has the opportunity to offer commitments to address the commission’s competition concerns.
The European Commission has not set a deadline for completing this investigation, which remains open-ended.
Opening this probe does not prejudge the final outcome, as the investigation will follow standard regulatory procedures. – AFP
