IP Law Daily, TECHNOLOGY/INTERNET NEWS: EC opens investigation to assess SAP’s involvement in anticompetitive practices, (Sep 26, 2025)

By Susan L. Smith, JD, MA

The Commission took issue with several practices implemented by SAP in the aftermarket for the maintenance and support services of SAP's on-premises Enterprise Resource Planning software.

The European Commission (EC) is investigating whether Systems Applications & Products in Data Processing (SAP) may have distorted competition in the aftermarket for maintenance and support services related to an on-premises type of software licensed by SAP. SAP uses the software for the management of companies' business operations referred to as Enterprise Resource Planning (ERP) in the European Economic Area (EEA). The EC is concerned that SAP may have restricted competition from third-party providers of maintenance and support services of SAP's on-premises ERP software in the EEA and the practices implemented by SAP constitute exploitative conduct vis-à-vis SAP's customers that may be qualified as unfair trading conditions. The EC has adopted a Preliminary Assessment summarizing the main facts of the case and identifying its competition concerns.

SAP is a German-based multinational corporation that develops software applications for companies to manage their business operations, including ERP software. The software supports business functions such as managing corporate finances, human resources, and project management. SAP's ERP software can be provided: (1) on-premises when the software runs on the customer's own servers, or (2) via the cloud when it is hosted on SAP's servers and delivered over the internet. In addition, SAP provides maintenance and support services for its ERP software including regular updates and technical assistance for its business customers to keep the software operational. The EC stated that other companies also provide maintenance and support services for SAP's on-premises ERP software, in competition with SAP, often against better commercial conditions, such as price.

The EC's preliminary investigation takes issue with four practices implemented by SAP in the EEA aftermarket for the maintenance and support services of SAP's on-premises ERP software, on which the EC preliminary considers that SAP holds a dominant position:

• SAP requires customers to (1) seek maintenance and support services from SAP for all their SAP on-premises ERP software, and (2) choose the same type of maintenance and support under the same pricing conditions for all their SAP on-premises ERP software. EC stated that this may prevent customers from “mixing and matching” maintenance and support services from different suppliers at different price and support levels despite it being more convenient for them;

• SAP prevents customers from terminating maintenance and support services for unused software licenses that may result in SAP's customers paying for unwanted services;

• SAP systematically extends the duration of the initial term of on-premises ERP licenses during which termination of maintenance and support services is not possible;

• SAP charges reinstatement and back-maintenance fees to customers who subscribe to SAP's maintenance and support after a period of absence. In some cases, these fees correspond to the amount customers would have paid if they had stayed with SAP all along.

SAP’s response. SAP confirmed that the EC started formal proceedings to address some areas of its on-premise maintenance and support policies that are based on long-standing standards that are common across the global software sector. Although SAP believes that its policies and actions are fully in line with competition rules, it takes the issues raised seriously and is working closely with the EC to resolve them. SAP stated that it does not anticipate the engagement with the EC to result in material impacts on its financial performance. Further, SAP stated it is committed to open competition and trusts that the EC will aim for a quick and fair conclusion to the proceedings.

Companies: Systems Applications & Products in Data Processing

News: TechnologyInternet