SAP Reaches Antitrust Deal with EU to Ease Customer Switching for On-Premise Software

SAP SE, the largest software company in Europe, has agreed to new contract terms to settle an antitrust investigation by the European Union, making it easier for customers to switch to competing service providers. The European Commission on Thursday accepted the legally binding commitments, allowing SAP to avoid a potential fine.

Details of the Agreement

The agreement resolves a probe launched by the Commission in September 2025. Regulators were concerned that SAP was creating unfair barriers for customers of its on-premise software who wished to change vendors for maintenance and support services. The commitments, which SAP modified after the EU solicited feedback from third parties, are set to apply worldwide for a duration of 10 years.

Under the terms of the deal, SAP has committed to several key changes:

• Providing an alternative calculation method for license fees, which are used to determine maintenance and service charges.
• Eliminating reinstatement fees for customers who decide to return to SAP's support services after a lapse.
• Lowering back maintenance fees for these returning customers.

Ad

Market Impact and Context

The decision is a significant development for the enterprise software support market, potentially increasing competition and providing customers with more flexibility and lower costs. The EU's antitrust chief, Teresa Ribera, stated that the move gives customers "more freedom to choose maintenance and support services without unfair restrictions that raised their costs and stifled competition."

By removing these contractual hurdles, the agreement opens the door for third-party service providers to more effectively compete for the business of maintaining SAP's widely used on-premise software. For investors, the resolution removes the uncertainty of a potential EU fine and clarifies the competitive landscape for SAP's lucrative maintenance and support business line.