The EU Commission has launched an investigation into SAP, accusing the software giant of abusing its market dominance through a licensing model that allegedly forces customers to rely on SAP's support and maintenance services, thereby blocking competitors.

SAP, Germany's most valuable company and a leader in enterprise resource planning software, faces scrutiny over practices that are considered standard in the industry but may violate competition rules.

The EU also alleges that SAP charges reinstatement and back-maintenance fees that could be comparable to ongoing support costs, raising concerns about potentially anti-competitive pricing.

Following earlier grievances, SAP has offered concessions but maintains its practices are typical within the software sector.

SAP has acknowledged the investigation, asserting that its policies align with industry standards and emphasizing its commitment to open competition.

The company has the opportunity to respond to Brussels' concerns by presenting formal commitments aimed at clarifying or resolving the allegations.

The news has already impacted SAP's stock, which fell by 1.47%, closing at 224.65 euros, reflecting market concerns over potential penalties.

SAP claims its practices are compliant with competition laws and is cooperating with authorities, not expecting significant financial impacts from the investigation.

The company also has the chance to propose remedies and believes its current practices are within legal boundaries.

If the allegations are proven, SAP could face a fine of up to 10% of its global annual sales, which last year was approximately 3.4 billion euros, underscoring the serious potential consequences.

This investigation exemplifies the EU's broader efforts to regulate large tech and software firms to prevent monopolistic behaviors and ensure fair competition.

Failure to address the EU's concerns could result in penalties and mandates for SAP to alter its business practices, with fines potentially imposed if it refuses or fails to comply.

Thousands of European companies rely heavily on SAP's software and support services, meaning any disruption or regulatory action could significantly impact the market.