SAP offers to make concessions to EU antitrust authorities on the practices linked to their ERP activities to avoid an investigation and the risk of exorbitant multibillion-euro fines.

SAP, Europe's largest software manufacturer, has made concessions if it wants to settle EU antitrust worries in connection with its enterprise resource planning (ERP) practice. Apparently, the move is to keep avoiding a full-scale investigation and get out of potential fines, if any, which could amount to as much as 10% of its global sales.

The European Commission has watched developments relating to SAP for years in light of complaints about licensing terms with inherent ambiguities and bundling of applications and vendor lock-in problems. According to information, SAP is thinking of a complaint over certain complaints related to its ERP software; however, the information is not revealed.

The Commission has previously invited firms to bear their comments with respect to the difficulties confronted when migrating ERP systems, especially from on-premise to cloud, and ascertaining if the practices of SAP and Oracle impede competition. Issues range from the cost of providing extensive support services to problems identifying flexible options from contesting vendors.

SAP concessions could transform the ERP business models in Europe by increasing freedom via the avoidance of vendor lock-in. The European Commission as well as SAP refused to comment on the latest development.

And the case also proves how pivotal ERP software has become for global companies accounting for finances, supply chains, and human resources and how the leading providers are increasingly targeted for regulatory scrutiny.