SAP to make it easier for customers to switch, averts EU fine

By Foo Yun Chee

BRUSSELS, July 9 (Reuters) - SAP, Europe's largest software maker, will make it easier for its customers to switch to rival service providers or end their contracts, EU antitrust regulators said on Thursday as part of concessions aimed at staving off a possible fine.

In September last year, the European Commission launched an investigation over concerns that SAP might be hindering competitors in the market for maintenance and support services of on-premise software. Regulators suspected SAP was making it difficult for its customers to switch vendors.

SAP subsequently tweaked its proposal after the EU competition watchdog received feedback from third parties, resulting in the Commission giving the green light to the concessions. Reuters exclusively reported on this in November last year.

"Today's decision gives customers using SAP's popular on-premises business management software more freedom to choose maintenance and support services without unfair restrictions that raised their costs and stifled competition," EU antitrust chief Teresa Ribera said in a statement.

SAP said: "The commitments provide greater clarity, choice and safeguards for customers managing complex on-premise environments."

Its plan includes offering an alternative method to calculate licence fees based on which maintenance and service fees are calculated. It will also scrap reinstatement fees and reduce back maintenance fees for returning customers.

SAP's offer is valid globally for 10 years. 

(Reporting by Foo Yun Chee; Additional reporting by Hakan Ersen in Frankfurt; Editing by Julia Payne and Kate Mayberry)