EU Launches Antitrust Investigation into Tech Firm SAP
(MENAFN) The European Commission has opened a formal antitrust investigation into German tech heavyweight SAP, citing concerns that the company’s policies around its software support services may be undermining fair competition.
The probe, announced Thursday, will assess whether SAP engaged in anti-competitive practices in the aftermarket for maintenance and support tied to its on-premise enterprise software.
The Commission stated it will examine "whether SAP may have distorted competition in the aftermarket for maintenance and support services related to an on-premises type of software, licensed by SAP, used for the management of companies’ business operations."
Responding to the investigation, SAP issued a statement maintaining that it has acted in accordance with European competition regulations.
"However, we take the issues raised seriously and we are working closely with the EU Commission to resolve them," the company said. "We do not anticipate the engagement with the European Commission to result in material impacts on our financial performance."
SAP, which ranks among Europe’s most valuable firms with a market capitalization near €274.2 billion ($321.7 billion), saw its shares decline 2% following news of the probe.
Despite a strategic pivot toward cloud-based services, SAP continues to derive substantial revenue from its traditional on-premise IT offerings. The company has faced mounting pressure from dominant cloud players such as Amazon and Microsoft, who hold significant market share in the public cloud sector.
The probe, announced Thursday, will assess whether SAP engaged in anti-competitive practices in the aftermarket for maintenance and support tied to its on-premise enterprise software.
The Commission stated it will examine "whether SAP may have distorted competition in the aftermarket for maintenance and support services related to an on-premises type of software, licensed by SAP, used for the management of companies’ business operations."
Responding to the investigation, SAP issued a statement maintaining that it has acted in accordance with European competition regulations.
"However, we take the issues raised seriously and we are working closely with the EU Commission to resolve them," the company said. "We do not anticipate the engagement with the European Commission to result in material impacts on our financial performance."
SAP, which ranks among Europe’s most valuable firms with a market capitalization near €274.2 billion ($321.7 billion), saw its shares decline 2% following news of the probe.
Despite a strategic pivot toward cloud-based services, SAP continues to derive substantial revenue from its traditional on-premise IT offerings. The company has faced mounting pressure from dominant cloud players such as Amazon and Microsoft, who hold significant market share in the public cloud sector.
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