The European Commission opened an antitrust investigation into SAP -- which offers both traditional software and cloud-based computing services -- in September over fears the company's practices may have distorted competition.
Image: Uwe Anspach/AFP
German software giant SAP avoided an EU fine after Brussels said on Thursday it addressed the bloc's competition concerns with promises to make changes.
The European Commission opened an antitrust investigation into SAP -- which offers both traditional software and cloud-based computing services -- in September over fears the company's practices may have distorted competition.
Now, the EU is satisfied the issues have been addressed by SAP's promises relating to services for its popular business management software.
For example, SAP will allow customers to terminate their licences in specific scenarios such as customers' insolvency or bankruptcy, the EU said.
The commitments are legally binding and must remain in force worldwide for 10 years, the European Commission, the EU's powerful antitrust regulator, said.
"Today's decision gives customers... more freedom to choose maintenance and support services without unfair restrictions that raised their costs and stifled competition," EU competition commissioner Teresa Ribera said.
It "should serve as a warning against similar practices in the cloud markets, where customers are increasingly moving", Ribera added.
AFP