SAP Faces EU Antitrust Probe Over Software Maintenance Practices

European regulators have launched a formal investigation into SAP's business software maintenance practices, scrutinizing potential anti-competitive behavior in the enterprise resource planning (ERP) software aftermarket. The probe focuses on SAP's on-premises ERP solutions, which remain widely used by corporations for financial management despite the industry's shift toward cloud-based systems.

SAP's stock dipped 2% following the announcement, though the German software giant maintains its practices comply with EU regulations. With a market valuation exceeding €280 billion, SAP represents one of Europe's most valuable technology companies, competing with Oracle and Microsoft in the lucrative ERP sector.

The European Commission's investigation centers on whether SAP abused its dominant position in maintenance services for installed software. While SAP claims the inquiry won't materially impact financial performance, the outcome could reshape competitive dynamics in the enterprise software sector.