EU launches anti-trust probe into German software giant SAP

The European Commission has launched investigations into the German software firm SAP over "possible anticompetitive practices" related to software maintenance, the European Union's executive arm said on Thursday.

The company is suspected of distorting competition in maintenance and support services for its "popular bussiness management software," the commission said in Brussels.

The commission is looking into whether other companies also offering maintenance for the SAP software are being disadvantaged because SAP is requiring customers to use its in-house maintenance programmes.

"SAP believes that its own guidelines and measures are fully compliant with competition rules," the company said. "However, we take the commission's concerns seriously and are working closely with it to find a solution."

SAP added that "no material impact on our financial results is expected."

The business management software in question is called Enterprise Resource Planning (ERP) and can be hosted on a company's own server or via the cloud on SAP's servers.

According to a preliminary assessment by the commission, SAP "requires customers to seek maintenance and support services" from the firm for "all their SAP on-premises ERP software."

Customers are also required to "choose the same type of maintenance and support under the same pricing conditions for all their SAP on-premises ERP software".

This might prevent customers from "mixing and matching" different providers offering different prices and levels of support, the commission said.

The European Commission also accuses SAP of not allowing customers to cancel maintenance and support services for unused software licences - meaning they are continuing to pay for services they don't need.

Meanwhile, customers returning to a SAP subscription are required to pay a fee, it said.

The commission said it is "concerned that the practices implemented by SAP constitute exploitative conduct vis-à-vis SAP's customers that may be qualified as unfair trading conditions."

The commission said it will now carry out an "in-depth investigation" into the matter, saying SAP may submit commitments to changes.

Otherwise, the company may face a fine.

SAP is Germany's most valuable company and was also ranked number one in Europe at one point this year. The firm is best known for ERP software, widely used for corporate finances, human resources and project management in companies across the country.