SAP Faces Regulatory Pressure While Pursuing AI Ambitions

Europe’s premier enterprise software provider finds itself navigating turbulent waters as regulatory challenges emerge alongside ambitious technological initiatives. The company must balance immediate legal concerns with its long-term strategic vision.

Competition authorities within the European Union have initiated formal proceedings against SAP, focusing on potential antitrust violations in the enterprise software market. The investigation, announced Thursday, examines whether the company leveraged its dominant position in on-premise ERP solutions to distort competition.

Key areas under regulatory scrutiny include:
* Competitive practices surrounding maintenance and support services
* Potential limitations on customer choice and possible cost implications
* Financial penalties that could reach up to 10% of global revenue if violations are confirmed

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