German software giant SAP has offered concessions to the European Commission in a bid to address antitrust concerns over its business practices, according to sources familiar with the matter. The move aims to avert a formal investigation and the possibility of fines that could reach up to 10% of the company’s annual global revenue, Reuters reported.
SAP, Europe’s largest software maker and a global leader in enterprise resource planning (ERP) systems, has faced scrutiny from EU regulators for several years. Concerns have centered on complex licensing terms, bundling of applications that may drive up costs, and barriers preventing customers from switching to rival providers.
Sources, who requested anonymity due to the sensitivity of the discussions, confirmed that SAP has submitted a proposal to resolve some of the issues raised. Details of the concessions were not disclosed. Both SAP and the European Commission declined to comment.
The Commission’s interest in the software sector dates back at least to 2022, when it sent questionnaires to businesses seeking information about the aftermarket support services of SAP and U.S. competitor Oracle. Regulators asked whether customers could freely select support services, switch vendors, or migrate from on-premise solutions to cloud-based alternatives. Respondents were also queried on whether SAP or Oracle sought to disparage rival offerings.
Potential remedies could involve giving customers greater flexibility in choosing service contracts and making it easier to transition to competing providers.
SAP is also facing antitrust challenges in the United States. In June, the company petitioned the U.S. Supreme Court to review a decision requiring it to face a lawsuit brought by data technology company Teradata, which accuses SAP of violating U.S. antitrust law.
The outcome of SAP’s proposal in Europe will determine whether the Commission pursues a full investigation or accepts the concessions as sufficient to address competition concerns.
