The European Commission has officially accepted a sweeping package of commitments from German software giant SAP, concluding an antitrust investigation into the aftermarket maintenance and support (M&S) services for its on-premises Enterprise Resource Planning (ERP) software. Following a robust market test conducted late last year, the Commission determined that SAP’s revised remedies adequately resolve its preliminary competition concerns. These commitments are now legally binding under EU antitrust rules for a global duration of ten years.
The Commission’s formal probe targeted corporate practices that allegedly allowed SAP to abuse its dominant position in the European Economic Area. Regulators found that SAP was restricting competition from independent, third-party maintenance providers by forcing businesses to pay maintenance fees on unused software licenses, charging aggressive “reinstatement” fees to returning customers, and systematically resetting lock-in periods whenever a client purchased an additional license. Furthermore, an “all-or-nothing” rule prevented IT departments from mixing and matching different support suppliers or pricing tiers across their SAP landscape.
To avoid massive antitrust fines, SAP adjusted its initial proposals and agreed to structural contractual changes. SAP will now allow corporate clients to segment their software landscape into distinct parts, giving businesses the freedom to select independent maintenance providers or drop maintenance entirely for specific segments. Historically trapped in locked-in contracts, customers can now legally terminate licenses and stop paying corresponding maintenance fees under specific real-world scenarios. These include instances where software reaches its final, reduced-service stage, or when an ERP implementation project fails due to SAP’s responsibility.
Additionally, if a company downsizes its workforce by 10% or more over a two-year period, it can cut its licenses and support costs by an equivalent 10%. In the event of a business divestiture, licenses can be transferred to the buyer or terminated if the buyer does not need them. Corporate insolvency or bankruptcy also triggers termination rights. SAP has also agreed to eliminate reinstatement fees entirely, lower back-maintenance costs, and stop restarting the lock-in term upon new license purchases.
An independent monitoring trustee will report regularly to the European Commission to guarantee compliance, and customers can turn to a new internal clearing structure for disputes. Should SAP fail to honor these binding obligations, the Commission can impose devastating financial penalties of up to 10% of its global annual turnover without needing to find a formal antitrust infringement.