EU forces SAP overhaul of software support rules amid competition concerns

EU forces SAP overhaul of software support rules amid competition concerns
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The European Commission has made legally binding a set of commitments from SAP after raising concerns about competition in maintenance and support services for the company’s on-premises business management software.

The case focused on aftermarket maintenance and support (M & S) for SAP’s on-premises Enterprise Resource Planning (ERP) systems — software used by organisations to manage functions such as finance, human resources and project management — rather than SAP’s cloud services, the Commission informed in a release on Thursday.

SAP agreed to clarify when customers can split their “SAP landscape” into separate parts so they can use different maintenance providers, choose different levels of SAP support, or have no support for some parts.

Customers will also be able to terminate licences and related M & S fees in specific situations, including when products are in the final stage of support with reduced services, after failed implementation projects where SAP is responsible, and in cases of insolvency or bankruptcy.

Companies that cut their workforce by 10% or more over two years will be able to reduce 10% of their licences and related M & S costs, while customers that divest a business will be able to transfer licences to the buyer, transfer some and terminate the rest, or terminate all licences if the buyer does not need the software.

Ten-year commitments monitored by a trustee

SAP also committed to give wider access to “single-metric” contracts — an alternative way to calculate licence fees, which in turn affects maintenance and support charges — and to clarify rules around the initial licence term when customers cannot terminate support contracts, the Commission said.

The company will abolish reinstatement fees and reduce back maintenance fees for customers returning to SAP support after a period away, and it will set up an internal process customers can use if they believe the commitments are not being applied correctly.

The Commission opened a formal investigation into SAP in September 2025 and said it had preliminarily identified four practices that could restrict competition across the European Economic Area market for M & S services for SAP’s on-premises ERP software.

Those concerns included SAP allegedly preventing customers from ending support for unused licences, charging reinstatement and back-maintenance fees that in some cases matched what customers would have paid without leaving, extending initial contract terms during which termination was not possible, and requiring customers to use SAP support for all on-premises ERP software under the same pricing and conditions.

The commitments will apply globally for 10 years and will be monitored by a trustee reporting regularly to the Commission.


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