EU Requires SAP to Revise Software Support Policies Following Competition Concerns

The European Commission has made legally binding a series of commitments from SAP after raising concerns about competition in the market for maintenance and support (M&S) services for the company's on-premises Enterprise Resource Planning (ERP) software. The investigation focused exclusively on aftermarket support for SAP's on-premises ERP solutions and did not involve the company's cloud offerings.

Under the agreed commitments, SAP will provide greater clarity on when customers can divide their "SAP landscape" into separate environments. This will allow organizations to use different maintenance providers, choose different levels of SAP support, or even operate certain parts of their landscape without SAP maintenance where appropriate.

SAP has also agreed to offer customers greater flexibility to terminate software licenses and related maintenance and support fees in several situations, including:

• when products reach the final stage of support with reduced maintenance services;
• following failed implementation projects where SAP is responsible;
• in cases of insolvency or bankruptcy.
  
  

Organizations that reduce their workforce by at least 10% over a two-year period will also be able to reduce up to 10% of their software licenses and associated maintenance costs. Additionally, customers divesting part of their business will have the option to transfer licenses to the acquiring company, transfer only a portion of the licenses while terminating the remainder, or terminate all licenses if the buyer no longer requires the software.

SAP also committed to expanding access to "single-metric" contracts, which provide an alternative licensing model that directly impacts maintenance and support pricing. The company will further clarify the initial license period during which customers are unable to terminate their maintenance agreements.

Additional commitments include eliminating reinstatement fees for customers returning to SAP support, reducing back-maintenance fees, and establishing an internal process through which customers can raise concerns if they believe the commitments are not being implemented correctly.

The European Commission launched its formal investigation in September 2025 after identifying four preliminary practices that could potentially restrict competition in the European Economic Area's market for maintenance and support services for SAP's on-premises ERP software.

The Commission's concerns included SAP's restrictions on terminating support for unused licenses, reinstatement and back-maintenance fees that could negate any savings from leaving SAP support, extensions of initial contract periods during which termination was not permitted, and requirements for customers to use SAP maintenance services across their entire on-premises ERP landscape under a single pricing model.

The commitments will apply globally for a period of 10 years and will be monitored by an independent trustee, who will regularly report to the European Commission to ensure SAP complies with the agreed measures.