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FinanceEU Commission accepts SAP commitments, closes competition probe
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The European Commission has accepted commitments from German software giant SAP, closing an EU competition probe that began in September. The investigation focused on how SAP provides support services for its on-premise Enterprise Resource Planning (ERP) software. SAP committed to clarify conditions allowing customers to use different providers for maintaining different pieces of its software, including the option to not rely on SAP at all. In some cases, customers can now end contracts and terminate payments, such as when SAP is in the final stages of a maintenance plan with reduced services or if it botched a project implementation. The commitments are binding for ten years. SAP stated it remains committed to open competition, customer choice, and innovation, adding that the commitments provide greater clarity, choice, and safeguards for customers managing complex on-premise environments.
Source report
The European Commission announced on Thursday that it has accepted commitments from SAP, concluding an EU competition investigation into the German business software giant.
Background of the Investigation
In September, the EU's competition watchdog launched an investigation into how SAP provides support services for its on-premise "Enterprise Resource Planning" (ERP) software.
Key Commitments
SAP has committed to:
- Clarify conditions under which customers may use different providers for maintaining various pieces of its software
- Allow customers to rely entirely on third-party providers for maintenance, without needing SAP itself
New Customer Protections
Under the commitments, customers will now be permitted to end their contracts with SAP—terminating ongoing payments—in certain new cases, including:
- When SAP is already in the final stages of a maintenance plan and provides reduced services
- If SAP botches the implementation of a project
Duration and Conclusion
The Commission confirmed to Euractiv that the acceptance of SAP's commitments—which will remain binding on the company for ten years—concludes the competition probe.
SAP's Response
"SAP remains committed to open competition, customer choice and innovation," the company said in a statement. "The commitments provide greater clarity, choice and safeguards for customers managing complex on-premise environments, while supporting flexible IT strategies aligned with business priorities."
Source
EuractivWestern
Part of this Story
EU accepts SAP commitments to ease customer switching, averting antitrust fine