SAP, Europe’s largest software maker, is preparing to submit a formal offer of concessions to the European Commission in an effort to resolve an ongoing antitrust investigation and avoid a potential heavy fine, Reuters news report said.
The European Commission launched its investigation into SAP’s software practices in September, focusing on whether the company unfairly restricted competition in the aftermarket for maintenance and support services of on-premise software. Regulators have accused SAP of preventing customers from switching to rival service providers and of charging reinstatement and back-maintenance fees when customers return to its services after a lapse.
SAP’s upcoming proposal aims to address these issues by improving customer flexibility and clarifying its fee structure. The EU executive is expected to seek feedback from SAP’s competitors and clients in the coming weeks.
SAP said it is cooperating with regulators and that its policies comply with EU competition rules. “In our proposed remedies, we are clarifying how they work as part of our commitment to transparency and customer choice,” a company spokesperson said.
The European Commission has not commented on the matter. However, the case comes as the EU seeks to demonstrate that its competition enforcement extends beyond U.S. tech giants such as Alphabet, Apple, and Meta, which have collectively faced billions of euros in fines.
Companies found guilty of violating EU antitrust laws can face penalties of up to ten percent of their global annual revenue. SAP’s offer, which follows an earlier informal market test by regulators, could bring the case to a swift resolution if accepted with minor adjustments.
