SAP, Europe’s largest software maker, has proposed concessions to the European Commission in an attempt to head off a potential antitrust investigation and fines, sources familiar with the matter told Reuters.
The German company dominates the enterprise resource planning (ERP) market, providing software that helps firms manage finances, supply chains, HR, and procurement. SAP has long been under scrutiny from EU regulators following complaints about complex licensing terms, the bundling of applications, and difficulties faced by companies trying to switch to rival suppliers.
According to sources, SAP has submitted a proposal aimed at addressing regulators’ concerns, though details of the remedies were not disclosed. If accepted, SAP could avoid a formal investigation and a penalty that could reach up to 10% of its annual global revenue. Both SAP and the European Commission declined to comment.
The Commission previously circulated a 2022 questionnaire to SAP customers asking about their ability to switch to rival vendors, purchase only specific support services, or migrate from on-premise ERP systems to the cloud. The inquiry also raised questions about whether SAP or Oracle had disparaged competitors.
Potential remedies could include giving customers greater flexibility to purchase individual support contracts and lowering barriers to migration between vendors.
SAP also faces antitrust pressure in the United States: in June it asked the U.S. Supreme Court to review a ruling requiring it to face a lawsuit from Teradata, which accused the company of anti-competitive practices.
The EU’s decision on SAP’s concessions will determine whether the company averts another high-profile investigation as regulators increase scrutiny of dominant software vendors.