EU Probes SAP Over ERP Software Support Practices
SAP, Germany's most valuable listed company with a market value of around 266 billion euros, faces a cartel investigation by the EU Commission. The probe follows criticism of SAP's customer practices in Europe, leading to a two percent drop in its stock in Frankfurt.
The Commission suspects SAP of distorting competition in maintenance and support services for its ERP software in Europe. Practices under scrutiny include customers paying for the same support for different products, being unable to cancel contracts for unused licenses, and facing high fees upon returning after an interruption. These practices could burden customers with important IT services and restrict competition, raising costs for European customers.
SAP rejects these allegations and expects the investigation to have no significant impact on its financial situation. This probe is part of a series of EU competition procedures targeting US tech companies, with SAP now in the spotlight. Microsoft is currently under investigation for antitrust issues related to its Teams platform bundling practices, but there are no specific charges against SAP at this time.
The EU Commission, led by Competition Commissioner Teresa Ribera, is investigating SAP's practices to ensure fair competition and protect European customers. SAP, while denying the allegations, is cooperating with the investigation, which is expected to have no significant financial impact on the company.
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