SAP to offer concessions to the EU over antitrust probe into ERP support practices

SAP will shortly submit formal concessions to the European Commission to settle an antitrust investigation into its software licensing and maintenance practices.

The Commission opened a formal investigation in September after concluding SAP may be restricting competition in the aftermarket for on-premises ERP maintenance and support services. The remedies will address concerns that SAP makes it harder for customers to use rival support providers, Reuters reported, citing sources familiar with the development.

The Commission conducted an informal market test of SAP’s proposals several months ago and will now seek feedback from competitors and customers before accepting the final offer, likely with minor tweaks, the report added.

For SAP, the concessions offer a way to avoid fines that could reach 10% of global revenue — over $3.7 billion based on the company’s 2024 sales of $37 billion.

Earlier, the German firm had reportedly submitted concessions to the commission to avoid a formal investigation.

What SAP must fix

The Commission’s preliminary assessment identified four practices that may violate competition rules across the 27-country European Economic Area.

SAP requires customers to buy the same level of maintenance and support from the company, under identical pricing, for all their on-premises ERP instances. This prevents customers from mixing and matching support services from different suppliers at different price levels, even when that would better suit their needs.

The company also blocks customers from canceling maintenance for unused software licenses and from ending support contracts when it extends the initial license term.

If customers do manage to cancel and later return to SAP support, the company charges reinstatement and back-maintenance fees that can equal what customers would have paid had they never left, effectively erasing any savings from using a third-party provider in the interim.

Years of complaints

The investigation builds on more than a decade of customer grievances. In 2010, software company Versata filed an antitrust complaint alleging SAP illegally excluded it from major accounts by refusing to share interoperability information and bundling competing software with its ERP products.

In 2018, German IT Users Association VOICE — whose 400 members include Siemens, Adidas, and Volkswagen — filed a complaint with Germany’s Federal Cartel Office targeting SAP’s “indirect use” licensing model, which charges fees when third-party applications access SAP data.

The Commission launched its systematic examination of ERP market practices in 2022, sending detailed questionnaires to companies about aftermarket support services. It also examined Oracle but focused on SAP because of its strong presence in the EEA.

Critical timing for legacy customers

The investigation matters particularly for users of SAP’s legacy ECC and Business Suite 7 applications, for which the company will end standard maintenance at the end of 2027.

SAP offers extended support at higher prices through 2030, and more limited transition support through 2033, while third-party providers like Rimini Street offer support through 2040, where contracts permit.

The timing is significant: enterprises planning long transitions from legacy SAP systems need clarity on their support options, particularly as third-party maintenance providers position themselves as cost-effective alternatives during the extended migration period.

According to the Reuters report, SAP said its on-premises maintenance and support policies “are based on long-standing standards that are common across the global software sector” and comply with competition rules.

The concessions are expected to simplify the process for moving to rival support providers and provide clearer explanations of SAP’s fee structures, according to the Reuters report.

The EU Commission and SAP did not immediately respond to requests for comment.

Why this matters now

The concessions, if accepted, could reshape SAP licensing negotiations before the 2027 deadline when standard maintenance ends for legacy ECC and Business Suite 7 systems. IT leaders planning extended transitions now have potential leverage to negotiate better terms on maintenance contracts and explore third-party support without facing punitive fees.

The case also signals broader EU scrutiny of enterprise software licensing practices. What happens with SAP could influence how other vendors structure their aftermarket support offerings across Europe.