The European Commission has opened a formal investigation to determine whether SAP has distorted competition in the aftermarket for maintenance and support services related to its on-premises ERP software. This investigation is particularly focused on the practices that may restrict competition from third-party providers in the European Economic Area (EEA).

SAP, a German multinational corporation, provides software applications for business management, including ERP software that supports various corporate functions. The Commission's preliminary assessment highlights concerns regarding SAP's dominant position in the market and its practices that may limit customer choices and inflate costs.

Key issues identified by the Commission include SAP's requirement for customers to exclusively use its maintenance and support services, preventing them from mixing services from different suppliers. Additionally, SAP's policies on terminating services for unused licenses and imposing reinstatement fees are under scrutiny, as they may lead to unfair trading conditions for customers.

The Commission emphasizes that the opening of this investigation does not imply any predetermined outcome. It will prioritize the investigation to ensure that companies using SAP's software can freely select the maintenance and support services that best meet their needs.