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Oracle licensing practices under EU antitrust scrutiny, source says

Created at 1 Sep · 8:37 PM1 source↑ Market-relevant
IN SHORT

European Union antitrust regulators are examining Oracle's software licensing practices, according to a person familiar with the matter. The European Commission is gathering information from third parties, similar to a case involving SAP that was settled in July.

Key Numbers

10%potential fine for SAP

Who's Involved

Oracle
U.S. cloud computing company whose licensing practices are under scrutiny
European Commission
EU antitrust regulator gathering information on Oracle
SAP
German rival that settled a similar case with the EU in July

↳ Why This Matters

The European Commission's scrutiny of Oracle's licensing practices could lead to significant changes in how software contracts are structured and potentially result in fines, impacting the company's revenue and market position within the EU.

Key facts

  • EU antitrust regulators are scrutinizing Oracle's licensing practices.
  • The European Commission is collecting information from third parties.
  • There is no formal investigation into Oracle at this time.
  • SAP recently settled a similar case with the EU.

The European Commission, the EU's competition enforcer, is reportedly examining the software licensing practices of U.S. cloud computing firm Oracle. A person familiar with the matter indicated that regulators are gathering information from third parties, a step that could lead to a formal investigation or the case being dropped.

This scrutiny mirrors a similar case involving German software giant SAP, which reached a settlement with the EU in July. SAP agreed to make it easier for customers to switch to rival services or terminate contracts, thereby avoiding a potential fine that could have amounted to 10% of its global annual turnover.

At present, a spokesperson for the European Commission stated that while the sector is being monitored for potential anti-competitive practices, there is no formal investigation underway into any company. Oracle did not immediately respond to a request for comment.

Frequently asked questions

The specific details of Oracle's licensing practices are not disclosed, but the review is similar to a case involving SAP that focused on customer contract terms and ease of switching providers.

No, a spokesperson for the European Commission stated that there is no formal investigation into Oracle at this stage, though the sector is being monitored.

SAP settled with the EU in July by agreeing to make it easier for customers to switch to rival services or end their contracts, averting a potential fine.

What Happens Next

01The European Commission may decide to launch a formal investigation into Oracle.
02The Commission may drop the case if no evidence of wrongdoing is found.

How It Developed

EU antitrust regulators are examining Oracle's software licensing practices.
The European Commission is gathering information from third parties.
A spokesperson for the commission stated there is no formal investigation at this stage.
SAP settled a similar case in July by offering concessions to customers.

Sources

T1
Oracle licensing practices on EU antitrust regulator's radar, source saysReuters

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