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FinanceEU 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 investigation into its on-premise Enterprise Resource Planning software support services. The probe, opened in September, examined how SAP provided support for its software. SAP committed to clarifying conditions for customers to use different providers for maintaining various software components, 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 botches a project implementation. The commitments are binding for ten years. SAP stated it remains committed to open competition, customer choice, and innovation, and that the commitments provide greater clarity 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 Made by SAP
- SAP has committed to clarify the conditions under which customers may use different providers to maintain various pieces of its software.
- Customers will now be permitted to rely on providers other than SAP itself for maintenance tasks.
- In certain new cases, customers will be allowed to terminate their contracts with SAP, ending any ongoing payments. This applies, for example:
- 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