European Communication is investigating potential anti-competitive practices in aftermarket services SAP provides for its on-primeses ERP software.
The decision to start an investigation into German software giants came after this Many years Regarding the claims of stakeholders in the industry that the company comes to maintenance and support services, the company misuses its main position in the market.
As the Chief Executive Branch of the European Union, the European Commission ensures that the European Union law is correctly applied and action when needed.
SAP is one of the world’s largest enterprise software companies, which employs over 109,000 people and with an annual global revenue of € 34.18 billion.
It specializes in Enterprise Resource Planning (ERP) solutions, which integrates Finance, HR, logistics and supply chains, and is a major provider of on-rude and cloud ERP solutions in Europe.
The Commission’s preliminary investigation belongs to four related to the practices responsible for SAP:
- To prevent “mix and match” with other providers, all SAP on-arrival ERP software requires customers to buy the same type of support.
- Blocking support for unused license, forcing customers to pay for unwanted services.
- The expansion of the word initial license is not possible during which the end of support is not possible.
- If they had never left SAP, then charging the reminiscent/back-ravaging fee equal to what the customers had paid.
If proved correct, these practices restrain competition from third-party ERP support providers and SAP implements improper trading conditions to customers.
“The Commission may have been concerned that SAP may have prohibited competing from third-party provider of maintenance and support services of SAP’s on-primesies ERP software in EEA,” Reads the announcement,
“The Commission is also concerned that the practices implemented by the SAP create exploiting conduct for SAP customers which may be qualified as inappropriate trading conditions.”
The intensive investigation of these issues will now be held with high priority, promising law -making bodies.
SAP Published a statement Where it accepted the proceedings, arguing that it follows industry-standard policies that fully comply with the applied competition rules.
The German software firm called for a quick and fair resolution, assuring investors that it was no significant financial impact from the case.
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