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SAP escapes EU penalty by easing customer lock-in concerns

SAP has avoided an EU antitrust fine by letting customers switch or end support contracts, opening its software support market to rivals.

SAP escapes EU penalty by easing customer lock-in concerns
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TL;DR: SAP avoided an EU antitrust fine by agreeing to let customers switch or end on-premise software support contracts and allow third-party support providers, resolving an EU probe into its maintenance and support practices and potentially saving the company billions while giving enterprise customers more choice and better pricing.
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Big German software company SAP has averted a potential EU antitrust fine by agreeing to open up its maintenance and support market for on-premise software. The European Commission has accepted the company's commitments to let customers switch or terminate support contracts more easily.

SAP escapes EU penalty by easing customer lock-in concerns 1

The change comes after an investigation by EU regulators into how SAP controlled access to its enterprise software for maintenance and support, a process that regulators argued stifled competition. Companies using SAP, which provides the critical infrastructure of any given company as its software processes finances, HR documentation, sales, etc, said they want to keep using SAP, but want third parties to be able to provide support. SAP has now allowed third-party providers to offer support services, which aligns with EU competition rules.

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These concessions have closed the probe without a fine, which reports say could save the company billions. The move is one of many dodges tech companies have done under the pressure of the EU regulatory hammer, as the watchdog continues to exert its power in the name of the consumer. The EU has been pushing for fairer access to critical enterprise services, and SAP's agreement sets a precedent for how large software vendors may need to adapt in the future.

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How might third-party support pricing and service levels compare to SAP's legacy support offerings according to related TweakTown coverage?

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How have other large enterprise software vendors responded to similar EU pressure, and could that influence SAP's long-term obligations?

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With this resolution, SAP avoids a costly and likely very drawn-out legal battle that will come with financial and reputational damages. For enterprise customers, the change could mean more choice and better pricing, which is great for businesses. However, what remains to be seen is whether competitors and regulators will push for similar reforms elsewhere.

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News Source:thenextweb.com

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Jak joined TweakTown in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms.

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