The European Union has launched a probe into SAP SE, investigating whether the German software company restricted competition in the market for on-premise maintenance and support services tied to its Enterprise Resource Planning (ERP) program.
Regulators suspect that SAP’s policies may have limited customer choice by making it harder for rival service providers to compete, leaving European businesses with fewer options and potentially higher costs.
“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,” European Commission Vice President Teresa Ribera said in a statement on Thursday.
The inquiry marks the latest move by the European Commission to scrutinise large technology firms and their influence in key digital and software markets, echoing previous probes into dominant players across industries and regions.
EU investigates SAP ERP service market
The European Union announced on Thursday that it is examining whether SAP’s licensing practices in the ERP market prevented customers from selecting alternative maintenance providers.
The focus is on the aftermarket for ERP services, which are essential for companies using the software to manage daily operations ranging from finance to logistics.
Officials stressed that the investigation is aimed at ensuring businesses in Europe are not unfairly restricted when seeking support services for their ERP systems.
SAP may submit commitments to address the Commission’s concerns as the process unfolds, depending on the outcome.
SAP response and financial reaction
SAP issued a separate statement saying its licensing and maintenance policies are consistent with global software industry standards and fully legal.
The company noted that it does not expect the probe to materially affect its financial performance.
Following the announcement, SAP’s shares fell by 1.5% in Frankfurt as of 12:03 p.m., moving in line with declines seen across its industry peers and broader technology markets in the region.
Links to Microsoft antitrust scrutiny
The case resembles the European Commission’s earlier probe into Microsoft, which centred on the alleged illegal bundling of its Teams video-conferencing tool with Office software.
That case led Microsoft to carve Teams out of its Office packages in Europe, resolving regulators’ concerns about competition.
The SAP investigation underlines the EU’s broader efforts to address competition in software and digital markets where dominant players can influence pricing and customer choice, often with long-term implications for enterprise technology adoption and overall operational costs.
SAP expands in cloud and AI markets
The probe comes at a time when SAP is pursuing major deals to strengthen its position in cloud computing and artificial intelligence.
The company has recently partnered with OpenAI and Amazon Web Services to enhance “digital sovereignty” offerings designed for European governments.
SAP has already seen rapid growth in its cloud division, with sales nearing €22 billion, almost three times higher than in 2019.
The company is now investing in adapting its software for the generative AI era, while continuing to ensure its ERP systems remain central to business operations worldwide across multiple sectors.
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