EU Launches Formal Antitrust Probe into German Software Giant SAP Over Maintenance Practices

European Commission Initiates Formal Investigation

The European Commission announced on Thursday, September 25, 2025, the launch of a formal antitrust investigation into German software behemoth SAP. The probe centers on whether the company has engaged in anti-competitive practices regarding the maintenance and support services for its widely used on-premises Enterprise Resource Planning (ERP) software across the European Economic Area (EEA).

European Competition Commissioner Teresa Ribera stated, 'Thousands of companies across Europe use SAP's software to run their business, as well as its related maintenance and support services.' She added, 'We are concerned that SAP may have restricted competition in this crucial aftermarket, by making it harder for rivals to compete, leaving European customers with fewer choices and higher costs.'

Allegations of Anti-Competitive Conduct

The Commission's preliminary assessment highlights several practices by SAP that raise competition concerns. These include:

• Requiring customers to obtain maintenance and support services exclusively from SAP for all their on-premises ERP software.
• Mandating that customers choose the same type of maintenance and support under identical pricing conditions for all their SAP on-premises ERP software, potentially preventing them from 'mixing and matching' services from different providers.
• Preventing customers from terminating maintenance and support services for unused software licenses, which could force them to pay for unwanted services.
• Systematically extending the duration of the initial term of on-premises ERP licenses, during which termination of maintenance and support contracts is not possible.
• Charging reinstatement and 'back-maintenance' fees to customers who re-subscribe to SAP's maintenance and support after a period of absence, sometimes equivalent to what they would have paid had they remained with SAP.

These practices are suspected of constituting exploitative conduct towards SAP's customers and may be qualified as unfair trading conditions.

SAP's Response and Market Context

In response to the investigation, SAP issued a statement asserting its belief that its policies and actions are 'fully in line with competition rules.' However, the company also stated, 'we take the issues raised seriously and are working closely with the Commission to resolve them.' SAP does not anticipate the engagement with the European Commission to result in material impacts on its financial performance.

As Germany's most valuable company and Europe's largest software maker, SAP holds a dominant position in the enterprise software market, with many major European manufacturers and industrial companies relying on its ERP systems. The investigation underscores the EU's ongoing scrutiny of large technology firms and their influence in key digital markets.

Potential Implications and Next Steps

The opening of a formal investigation does not prejudge its outcome. To address the Commission's concerns, SAP may submit commitments. However, a formal antitrust ruling could result in significant penalties, with fines potentially reaching up to 10% of SAP's annual global revenue. Based on its 2024 sales, this could exceed $3.7 billion. The Commission will now carry out its in-depth investigation as a matter of priority.