EU Commission Launches Antitrust Probe Into SAP's Market Practices

The European Commission has launched an investigation into SAP, the German enterprise software giant, over alleged anti-competitive practices related to its dominant position in the commercial management software market, specifically focusing on its Enterprise Resource Planning (ERP) software. The investigation centers on whether SAP has hindered competition by requiring customers to use its maintenance and support services exclusively, imposing strict conditions that prevent customers from choosing alternative providers, and charging for unwanted services, which may lead to higher costs and fewer options for European companies. SAP denies any wrongdoing, asserting that its practices comply with competition laws and is cooperating with the Commission, expecting no significant financial impact. Following the probe announcement, SAP's shares declined by up to 2.6 percent amid ongoing downward pressure, with the stock losing about 5 percent since the start of the year and 16.5 percent since mid-July, reflecting investor concern. Despite the scrutiny, SAP remains a leading global software provider with robust financial health, a diverse software portfolio, and a strong market position. The EU's investigation highlights growing regulatory attention on dominant tech companies and their impact on market competition and consumer choice.