By Mauro Orru

Germany's SAP proposed changes to how clients can request support and pay for its business-management software, seeking to allay competition concerns from European Union officials weeks after they launched an investigation into the company.

The European Commission, the EU's executive arm, in September opened a probe on what it said were possible anticompetitive practices related to SAP's enterprise resource planning software that companies use to oversee and streamline operations in areas like finance, sales, human resources, supply chain and procurement.

ERP software is generally provided through the cloud, but it can also be made available on premises, when it is installed in a company's data center. EU officials have said that SAP requires clients to seek maintenance and support services from SAP itself for its on-premises ERP software, potentially restricting competition for third-party providers.

The commission said it had now received proposals from SAP that would let clients choose between different support-services providers, opt for different levels of SAP support or for no SAP support at all.

"As a major European player in a dynamic global industry, SAP is committed to open competition and believes that its policies and actions are fully in line with competition rules," SAP said in a statement.

The EU previously said SAP charges reinstatement and back-maintenance fees to clients who subscribe to its maintenance and support services following an absence period, adding that those fees sometimes correspond to the amount that companies would have paid if they had stuck with SAP all along.

Officials had also said that SAP prevents clients from terminating maintenance and support services for unused software licenses, meaning they might be paying for unwanted services. In addition, they said the company extends the length of the initial term of on-premises ERP licenses, during which it isn't possible to terminate maintenance and support services.

The commission said SAP has now offered to abolish reinstatement fees and reduce maintenance fees charged to clients once they resume support services after a period of inactivity. The company also proposed clarifications of its contractual provisions on the initial term of licenses and refrain from restarting such term at every additional license purchase, the commission added.

SAP said its policies were standard practice across the software industry and that its proposals were aimed at clarifying how its policies work. The company noted that the commission's concerns were about specific aspects of SAP's on-premise maintenance and support policies and don't affect its cloud offerings.

"We are adhering to the procedure and timeline established by the European Commission, and trust they will bring this proceeding to a quick and fair close," SAP said. "We do not anticipate the proceeding will result in material impacts on our financial performance."

The commission said it was seeking feedback on SAP's proposals, which will remain in force for 10 years if approved. EU officials said a trustee would monitor their implementation and regularly report back to the commission.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

November 14, 2025 07:07 ET (12:07 GMT)

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