The European Commission has launched an investigation into German software company SAP over "potential anti-competitive practices" related to software maintenance, risking the company a fine.
The investigation focuses on whether SAP disadvantages rival providers of maintenance services for its "popular business management software" by requiring customers to use only its own after-sales support services.
At the core of the probe is SAP’s Enterprise Resource Planning (ERP) software. Preliminary findings suggest SAP obliges customers to purchase its maintenance and support services for all ERP software they use.
Customers are reportedly required to opt for the same type of support under identical pricing terms for all their ERP systems.
This practice allegedly prevents customers from mixing services with different providers, prices, or support levels, according to the Commission.
Additionally, SAP is accused of not allowing customers to stop paying for support on unused software licences, forcing them to pay for services they no longer need. Customers wishing to reactivate SAP subscriptions must also reportedly pay a penalty fee.
"We are concerned that SAP may have restricted competition for these vital after-sales services by making it more difficult for rivals to compete, leaving European customers with less choice and higher costs," said European Competition Commissioner Teresa Ribera.
In response, SAP stated it believes its policies comply with competition laws but takes the Commission’s concerns seriously.
The company said it is cooperating closely to find a resolution and does not expect the investigation to have a material impact on its financial results.
