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Investing.com -- SAP SE (ETR:SAPG) stock dropped 2.5% on Thursday after the European Commission launched an investigation into potential anticompetitive practices by Europe’s largest software maker.
The probe centers on whether SAP has distorted competition in the market for maintenance and support services related to its widely-used Enterprise Resource Planning (ERP) software.
Regulators are examining if the German tech giant has restricted competition by creating barriers for rival service providers.
"Thousands of companies across Europe use SAP’s software to run their business, as well as its related maintenance and support services," European Commission Vice President Teresa Ribera said in a statement.
"We are concerned that SAP may have restricted competition in this crucial aftermarket, by making it harder for rivals to compete, leaving European customers with fewer choices and higher costs."
The investigation comes as a potential setback for SAP, whose business management software serves as critical infrastructure for numerous European enterprises. Maintenance and support services represent a significant revenue stream for enterprise software companies.
In response to the investigation, SAP stated it would cooperate with the commission while maintaining that its "policies and actions were fully in line with competition rules."