Exclusive-SAP to offer concessions to settle EU antitrust probe, stave off fine, sources say

By Foo Yun Chee

BRUSSELS (Reuters) -SAP, Europe's largest software maker, is set to make a formal offer of concessions shortly to settle an EU antitrust investigation and stave off a possible hefty fine, people with direct knowledge of the matter said.

The case will help EU regulators counter U.S. criticism that they only target U.S. tech giants such as Alphabet, Apple and Meta Platforms that have faced billions of euros in fines.

The European Commission, which started an investigation into SAP's software practices in September, is expected to seek market feedback from rivals and customers in the coming weeks, the people said.

SAP SAYS ADHERING TO COMMISSION PROCESS

The Commission did an informal market test a few months ago and the final SAP offer will likely be accepted with possibly a few tweaks, the people said. They declined to provide details of the concessions, citing confidentiality reasons.

The EU executive, which acts as the competition enforcer for the 27-country bloc, declined to comment.

SAP said its policies and actions are in line with competition rules and reflect standard practice across the enterprise software industry.

"In our proposed remedies, we are clarifying how they work as part of our broader commitment to transparency and customer choice," a SAP spokesperson said.

"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."

The EU watchdog has said SAP may be thwarting rivals in the aftermarket for maintenance and support services of on-premise software by preventing customers from switching to other vendors.

It has said the company prevents customers from ending support services for unused software licences and that it charges reinstatement and back-maintenance fees to customers who subscribe to its maintenance and support after a period of absence.

SAP's remedies would seek to address these issues by making it easier for customers to switch to rivals and also make clearer the basis for its fees, according to another person.

Companies risk fines as much as 10% of their global annual sales if found guilty of breaching EU antitrust rules.

(Reporting by Foo Yun CheeEditing by Mark Potter)