The European Commission has formally opened an antitrust case against SAP, the German enterprise software giant, over concerns that its practices in maintenance and support services for its on-premises ERP (Enterprise Resource Planning) software may be restricting competition. The probe underscores growing regulatory scrutiny of “after-market” practices in the tech industry, particularly around software vendors’ ties to customers’ ongoing support, licensing, and maintenance obligations.

Details of the EC’s Investigation into SAP

The European Commission’s inquiry focuses on SAP’s policies for customers using its on-premises ERP systems. Regulators are investigating whether SAP compels customers to buy maintenance and support services exclusively from SAP itself, with terms that make it difficult to use third-party alternatives. Specific practices under review include requirements that support and maintenance contracts must cover all on-premises ERP instances under uniform conditions, prohibitions or disincentives on canceling support for software licenses no longer used, contract extensions that lock in customers, and steep reinstatement fees for customers returning after lapses in their support arrangements.

Another major concern is what happens when SAP phases out standard maintenance for older ERP systems. For example, some clients using legacy versions like ECC and Business Suite 7 will lose standard support at the end of 2027, while SAP is offering extended support at a higher cost through 2030 and limited transition arrangements through 2033. Meanwhile, third-party providers like Rimini Street are offering alternative support beyond SAP’s cutoff, where contracts permit. Regulators want to ensure that customers can switch support providers more freely and aren’t unfairly locked into paying for support for licenses they are no longer using.

SAP has responded by asserting that its maintenance and support policies are long-standing and consistent with global industry norms and in compliance with EU competition law. The company has pledged full cooperation with the Commission, suggesting it may propose commitments to mitigate regulatory concerns. However, SAP also stated that it does not expect any material financial impacts from this investigation.

Why the Probe Matters for Businesses and the Software Industry

This investigation strikes at a widespread tension in enterprise software: the balance between vendor-lock-in and user choice. After-market maintenance and support services represent a substantial share of revenue for many legacy software vendors. If SAP is found to have used its dominant ERP position to limit competition, the outcome may force major changes in how support, maintenance, and licensing models are structured across the industry.

Customers—large companies, public sector organizations, and others that use on-premises ERP systems—may gain more flexibility, better pricing, and more options on who supplies maintenance. For businesses paying for support on software modules or licenses not actually in use, the probe could lead to relief or legal requirement to avoid such charges. If reinstatement fees or auto-renewal features are excessive, they might be limited or banned.

Third-party support firms may benefit if the EC demands that SAP or similar vendors open up maintenance and support contracts to competing providers. This could create a more competitive aftermarket and reduce total cost of ownership for customers. The cloud computing sector is also affected: SAP has been shifting more of its business to cloud-based services, so clarity and rules around when customers can move off on-premises arrangements or mix cloud and on-premises components will be of great interest.

For software licensing, the probe may catalyze broader reforms. Uniform licensing, bundled maintenance, auto-extending terms, and reinstatement fees are common across many vendors—not just SAP. A legal precedent here could ripple through the industry, influencing how contracts are structured, how support obligations are sold, and how vendors compete on after-sales service rather than simply on product features.

Broader Industry Implications and Regulatory Trends

SAP is not the first major tech company to draw antitrust attention from Brussels; regulators have in recent years increased scrutiny of how large vendors use their market strength in support, licensing, and cloud-service business models. Microsoft, Apple, Amazon, and others have all faced competition probes. The SAP case adds to this momentum, particularly because it centers not on consumer-facing products but business infrastructure—the software backbone of many large companies.

One impact is likely to be on corporate procurement and budgeting. Businesses using SAP on-premises ERP systems may begin re-negotiating support contracts, auditing usage of licenses, and exploring third-party or hybrid support options. Many companies might accelerate their move to cloud ERP or managed services if they perceive risk in being locked to vendor maintenance policies. Changes in how maintenance is priced or liability and termination fees are handled could also reshape vendor-customer relationships.

Regulators have signaled that they expect concessions as well as binding remedies. There is precedent for vendors offering voluntary makeovers of contract terms to avoid penalties. If SAP proposes changes — such as allowing mixed providers for support, removing automatic contract renewals, or reducing or eliminating reinstatement penalties — and these are accepted by Brussels, then enforcement may follow but with less disruptive consequences. If not, SAP could face fines up to 10 percent of global turnover or orders from the Commission to change its business practices.

This probe also reflects Europe’s broader regulatory ecosystem, which has placed emphasis on digital sovereignty, competition, and reducing dependency on dominant vendors. Rules on interoperability, licensing flexibility, and marketplace fairness are increasing. As enterprises become more dependent on software, ensuring after-market competition becomes key for cost control, innovation, and flexibility.

(Adapted from France24.com)