Sources indicate that SAP, the biggest software company in Europe, has put forward a series of concessions in a bid to allay the European Union's antitrust concerns regarding its business operations. At present, SAP is pulling out all the stops to sidestep an EU investigation, along with potential fines that could amount to as much as 10% of its global annual revenue.
As a worldwide frontrunner in enterprise resource planning (ERP) software, SAP has, for a considerable time, been under the watchful eye of the European Commission. This scrutiny stems from issues like convoluted licensing terms, the practice of bundled sales, and the challenges customers encounter when trying to switch suppliers.
In 2022, the EU sent out questionnaires to various companies. These questionnaires centered on inquiries about the after-sales support services for ERP provided by SAP and Oracle, as well as the difficulties customers face during the transition process. While the specifics of the solution proposed by SAP remain undisclosed to the public, typical remedial actions often encompass boosting contract flexibility and cutting down on the costs customers incur when making a transition.