EU Eyes Oracle Licensing Following SAP Settlement
AI-generated image · US National Wire
The European Commission is reportedly examining Oracle's pricing and licensing practices as it monitors anti-competitive conduct in the enterprise software sector.
The European Commission (EC) is examining the software licensing practices of Oracle, as first reported by The Register via MLex. While an EC spokesperson told The Register that no formal investigation into any company is currently underway, the commission is reportedly seeking views from third parties.
This scrutiny follows a recent EC investigation into SAP. In July, the EC accepted legally binding commitments from the German vendor to reduce back-maintenance fees and abolish reinstatement fees. Gartner noted that these concessions make third-party support a more viable alternative to migration for legacy SAP applications, which is particularly relevant as support for some older SAP products expires in 2027.
Oracle has faced long-standing criticism over several licensing models. One point of contention is the Oracle Java SE Universal Subscription introduced in January 2023. While Oracle described the monthly subscription as a "simple, low-cost" option, Gartner estimated the per-employee subscription model could be two to five times more expensive than legacy versions, as some businesses may be charged based on total employee count regardless of limited Java usage.
Additionally, Oracle's Unlimited License Agreement has been flagged by some licensing advisors as a mechanism that locks users in, limits alternative product choices, and offers poor value. Oracle maintains that its licensing practices are fair and that the Unlimited License Agreement provides flexibility and value.