The German software giant SAP managed to avoid a fine from the European Union after Brussels announced on Thursday that the company satisfied the bloc's concerns regarding competition by promising to make necessary changes.
The German software giant SAP managed to avoid a fine from the European Union after Brussels announced on Thursday that the company satisfied the bloc's concerns regarding competition by promising to make necessary changes.
The European Commission launched an antitrust investigation into SAP in September. The company provides both traditional software and cloud computing services, and the investigation was initiated due to concerns that the company's operating methods might distort the competitive environment.
The EU is currently satisfied that SAP has addressed the raised issues through its commitments concerning services for its popular business management software. For example, SAP has agreed to allow customers to terminate licenses in certain situations, such as customer bankruptcy or insolvency, as reported by the EU.
These obligations are legally binding and must be effective worldwide for ten years, clarified the European Commission, which is a powerful EU antitrust regulator. EU Competition Commissioner Teresa Ribera stated: 'Today's decision gives customers... more freedom of choice in maintenance and support services without unfair restrictions that increased their costs and suppressed competition.'
Ribera added that this decision 'should serve as a warning against similar practices in cloud technology markets, where customers are increasingly moving.'