SAP escapes EU fine by updating on premises customer maintenance and service contract conditions

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SAP has avoided a fine from the European Union (EU) after reaching an agreement with Eurocrats around making it easier for customers to mix-and-match maintenance and support services (M&S).

Back in September last year, the European Commission (EC) opened a formal investigation into EU competition concerns relating to SAP’s after-market support services for on-premises ERP software. Its preliminary finding was that SAP has been engaging in four practices that could restrict competition in the EEA-wide market for M&S services for SAP's on-premises ERP software and indicated abuse of its market position.

These were that the firm was preventing customers from terminating maintenance and support services for unused software licences, which may have resulted in SAP's customers paying for unwanted services. In addition it has been charging re-instatement and back-maintenance fees to customers who subscribe to SAP's maintenance and support after a period of absence, in some cases charging fees that...

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