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ERP
Business Honor
23 September, 2025
SAP faces EU pressure for unfair ERP practices, offers solutions to avoid deeper investigation.
The popular German software company SAP is famous for its enterprise resource planning (ERP) products. This kind of software helps companies in managing important processes such as supply chains, sales, procurement, finance, and human resources. ERP systems are used by many big businesses to make sure that their operations run smoothly.
The European Union (EU) has recently analyzed SAP for how it manages its ERP business. There are concerns that have been voiced by certain businesses over SAP's software conditions, such as the way things are packaged or licenses are set up and how challenging it may be to move to a different software provider. These issues can increase costs and limit competition.
To avoid a formal investigation and possible fines, SAP has offered changes, or "concessions," to the EU regulators. The company hopes these adjustments will resolve the concerns without leading to further legal action. The EU Commission, which checks for fair competition in the market, is reviewing SAP’s offer.
In 2022, the EU has sent out surveys to companies asking about their experiences with ERP providers like SAP and Oracle. They wanted to know if businesses found it easy to change support services or move from older on premise systems to cloud based ones. The EU also asked whether these big software vendors made it hard for competitors to enter the market.
The goal is to make ERP services more flexible and competitive. Companies should be able to choose the services they need without being locked in. SAP is also facing a similar antitrust lawsuit in the U.S., brought by Teradata, a data technology company. SAP has asked the U.S. Supreme Court to review that case. Additionally, SAP is working to address growing concerns about how it runs its ERP business in both Europe and the U.S.