European Commission examines Oracle’s licensing practices following SAP inquiry
The European Commission is reportedly examining Oracle's software licensing practices, potentially laying the groundwork for a formal investigation similar to the one it recently concluded against SAP. According to MLex, the Commission has begun seeking third-party views on Oracle's approach, though it has stressed that no formal probe has yet been opened. The move matters because it signals continued EU regulatory interest in how major enterprise software vendors licence and support their products, following a case that forced SAP to make significant concessions to customers.
The scrutiny follows the EC's investigation into SAP, which concluded in July with the German firm agreeing to legally binding commitments, including scrapping reinstatement fees and cutting back-maintenance charges. Oracle's licensing practices have long drawn criticism, notably its 2023 shift to a per-employee subscription model for Java SE, which Gartner estimated could cost two to five times more than the previous scheme, and its Unlimited License Agreement, which critics say locks customers in despite Oracle's insistence it offers flexibility and value. An EC spokesperson confirmed ongoing monitoring of the sector for anti-competitive conduct but said no formal investigation into any company is currently underway.
In short
- EC reportedly gathering views on Oracle's licensing ahead of possible probe
- Follows SAP case, which ended with binding commitments in July
- Oracle's Java subscription model and licence agreements face long-standing criticism
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
EU scrutiny could help ensure that dominant software suppliers use licensing and support terms that are transparent and do not unfairly penalise customers who need to maintain or change systems. The SAP commitments suggest regulatory attention can produce practical remedies, while seeking views from third parties may help establish whether Oracle’s practices raise similar competition concerns before any formal case is opened.
The case against
Oracle’s licensing models may reflect legitimate choices about how to price, support and develop complex software, and subscriptions or long-term agreements can offer predictable costs and flexibility for some customers. Without a formal investigation or established findings against Oracle, treating criticism or comparisons with SAP as evidence of misconduct could overstate the case and risk discouraging commercial innovation.
Explained simply
Enterprise software is used by organisations to run services such as finance, human resources and databases. Oracle and SAP are two large suppliers; their licences set out how customers can use the software and what they pay for support and maintenance.
The European Commission enforces EU competition rules and can examine whether companies’ practices restrict competition. Its recent case involving SAP ended with legally binding changes to some fees, making it a point of reference for scrutiny of other software suppliers.
Oracle’s licensing arrangements have attracted criticism from some customers and industry analysts, including over how prices are calculated and how difficult it can be to change systems. The issue matters because licence terms can affect organisations’ costs and choices, while competition oversight may influence how software companies deal with customers.
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Originally published by The Register as “Oracle may be next in EU software licensing hot seat following SAP deal”.