German software company SAP is reported to have offered concessions to the European Union (EU) to address concerns over antitrust practices linked to its ERP software.

The move aims to prevent a possible investigation and fines from the EU’s competition enforcement body, reported Reuters.

SAP, a provider of enterprise resource planning systems, has been under scrutiny for its licencing terms and the challenges customers face when attempting to switch providers.

Regulatory attention on SAP has intensified following complaints regarding the bundling of applications, which some customers claim inflate costs.

Sources familiar with the situation, who requested anonymity, revealed that SAP has submitted proposals to address these regulatory concerns but did not provide detailed information about the nature of these concessions.

Successfully addressing the EU’s antitrust concerns could enable SAP to avoid an investigation and a potential fine, which could be as much as 10% of its annual global revenue.

Both SAP and the European Commission (EC) have not commented publicly on the negotiations.

In 2022, the EC distributed a questionnaire to businesses, seeking insights into the ERP support services offered by SAP and Oracle.

The survey focused on the ease of switching service providers, the freedom to choose or change support service contracts, and any hurdles faced in the process.

Oracle did not respond to requests for comment on the matter.

The EC’s queries also explored the transition from on-premise to cloud solutions and whether competitive barriers exist within SAP and Oracle’s operations.

Proposed remedies might include increased flexibility in service contracts and simplifying the transition to competitor services.