the Autorité de la concurrence opens an investigation

The Computer Club of Large French Companies (Cigref) announced on May 9 that it had filed several referrals to the Competition Authority during the summer of 2021 for anti-competitive practices by certain software publishers. Cigref’s members include CIOs (Directors of Information Systems) from the largest French companies such as LVMH, TotalEnergies, BNP Paribas, etc.

Cigref denounces anti-competitive practices

If Cigref specifies in its press release that it has made these calls concerning several software publishers, SAP is the first to be targeted by an investigation by the Competition Authority in this case, “At this stage, the Competition Authority has decided to give priority to the instruction of the referral relating to SAP, which it will launch with companies and public bodies, customers or not of SAP. »

However, according to Cigref, the purpose of these referrals is not ” to sanction the suppliers concerned but to put an end to practices deemed unfair, even anti-competitive, of which their customers are victims, in particular [leurs] members “.

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The association claims arbitration by the Competition Authority on these practices in order to promote ” better regulation of digital services markets in France and Europe “.

SAP in the viewfinder

The German company SAP, known for its management and maintenance software for businesses, is accused, among other things, of “locking in” and “price strangulation” of their customers by SaaS suppliers, of favoring payment at the added value rather than the use or the user, of capping software license agreements (SLAs) and excluding security patches on native flaws in license agreements.

The French-speaking SAP Users’ Club (USF) gave its point of view on the case to IOC. ” The USF thus considers this initiative of the Authority [de la concurrence] as a unique and strategic opportunity to set the framework for clarifying the situation. ” Words very briefly confirmed by SAP which “ is committed to fostering a business environment based on a transparent and healthy competitive relationship », Reports IOC.

The Competition Authority’s investigation will allow SAP to clarify its positions. The outcome of investigations targeting other software vendors, such as SAP, remains unknown for the time being. Other similar operations could take place in the future, as business models taking advantage of the lock-in are increasingly singled out by CIOs.

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