Oracle Could Be Next Under the EU Microscope After SAP Licensing Climbdown

The European Commission may be sizing up Oracle for a formal antitrust investigation into its software licensing practices, following the recent resolution of a similar probe into SAP.

The SAP case wrapped up in July with the German ERP giant agreeing to scrap reinstatement fees and cut back-maintenance charges, among other concessions. Binding commitments, not fines, but enough to signal the Commission is taking a harder look at how enterprise software vendors treat their customers.

Now MLex reports the EC has begun canvassing third-party views on Oracle's licensing approach, typically an early step before any formal proceedings. An EC spokesperson told The Register the SAP matter was closed and that regulators would 'continue to monitor possible further anti-competitive practices and abusive conduct in this sector,' while adding there is currently no formal investigation into any company. Oracle did not respond to a request for comment.

If the Commission does decide to look more closely, it will find plenty of material. Oracle's licensing practices have been a source of frustration for enterprise customers for years, and the company has consistently defended them as fair.

Java is the most prominent flashpoint. Oracle inherited it through the 2009 acquisition of Sun Microsystems, and while OpenJDK remains open source, Oracle has never been shy about monetising its commercial Java distribution. The January 2023 overhaul of Oracle Java SE licensing was particularly controversial. Under the new subscription model, companies pay based on their total employee headcount rather than actual Java usage. Gartner estimated the switch could mean costs two to five times higher than before. For organisations running a handful of Java instances, the bill could still be calculated against thousands of employees who have never touched the software.

Then there are Unlimited License Agreements, the all-you-can-eat deals that sound generous until you read the small print. Licensing advisors have long argued these arrangements lock customers in, discourage evaluation of competing products, and rarely deliver the value they appear to promise on paper. Oracle disagrees, naturally.

For enterprise customers, the SAP outcome offered a useful precedent. Gartner noted it opened the door to third-party support as a realistic alternative to migration, particularly relevant as Oracle prepares to wind down support for some older SAP products in 2027. Whether the Commission decides Oracle warrants the same treatment remains to be seen, but the direction of travel is fairly clear.