SAP has agreed to a set of concessions aimed at ending an EU antitrust investigation that has focused on its on‑premise Enterprise Resource Planning (ERP) support services. The remedies allow customers to select from multiple support‑service providers, choose different levels of SAP‑branded support, or opt to forgo SAP support entirely. In addition, SAP will eliminate reinstatement fees, reduce maintenance fees for customers who resume support after a period of inactivity, clarify the basis for its fees, and make it easier for customers to switch to rival solutions. The concessions are slated to remain in effect for ten years if approved by the European Commission.
The EU probe centers on SAP’s historical bundling of support with its on‑premise ERP software, a practice that regulators argue limits competition by making it difficult for customers to switch to third‑party providers. SAP’s support model has been a significant revenue stream, but the company has said it does not expect the settlement to materially impact its financial performance. Management emphasized that the proposed remedies are consistent with industry standards and reflect SAP’s broader commitment to transparency and customer choice.
SAP’s support services have traditionally accounted for a sizable portion of its recurring revenue, and the company is simultaneously accelerating a shift toward cloud‑based solutions. The concessions therefore carry strategic implications: they may reduce bundled support income while potentially accelerating migration to the cloud, where SAP can capture higher margins and tighter customer lock‑in. The company’s statement that the settlement will not materially affect earnings signals confidence that the revenue loss from on‑premise support will be offset by growth in its cloud offerings.
Management’s comments highlight that the remedies are designed to address specific EU concerns—restrictive licensing, high reinstatement fees, and limited switching options—without altering SAP’s overall business model. The company reiterated that its policies are in line with competition rules and that the concessions are part of a broader effort to maintain open competition while preserving its support‑revenue streams.
While the market has not yet reacted to the concessions announcement, the EU probe itself had already caused a modest decline in SAP’s share price when the investigation was opened in September 2025. The concessions are expected to reduce regulatory uncertainty and may improve investor confidence in SAP’s long‑term strategy, particularly as the company continues to invest in cloud and artificial‑intelligence capabilities.
In summary, SAP’s concessions represent a significant regulatory milestone that could reshape its support‑service revenue model and accelerate its transition to cloud‑based solutions. The company’s assurance that the settlement will not materially impact earnings, combined with its strategic focus on cloud, suggests that SAP is positioning itself to navigate the regulatory environment while pursuing growth in higher‑margin areas.
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