The European Commission is reportedly gathering third-party views on potential antitrust scrutiny of Oracle software licensing practices, following recent actions against SAP.

The European Commission (EC) appears to be laying the groundwork for a potential investigation into Oracle’s software licensing practices, according to recent reports. This scrutiny follows the EC’s concluded probe into enterprise software rival SAP, which resulted in the Commission accepting legally binding commitments from the German vendor. Among the concessions were the abolition of reinstatement fees and reductions in back-maintenance fees.

According to MLex, the EU’s executive arm has begun examining Oracle’s licensing practices ahead of a possible formal investigation. One source told the publication that the EC is currently soliciting feedback from third parties. When contacted by The Register, an EC spokesperson confirmed that the commission had closed its SAP inquiry and “will continue to monitor possible further anti-competitive practices and abusive conduct in this sector.” However, the spokesperson added, “At this stage however, there is no formal investigation into any company.” The Register has requested comment from Oracle.

Oracle’s licensing practices have faced sustained criticism over the years, though the company maintains they remain fair. A frequently cited example involves its handling of Java, which came under Oracle’s stewardship following its acquisition of Sun Microsystems in 2009. While OpenJDK, the reference implementation of the Java platform, remains open source, vendors retain the right to charge for proprietary development kits, runtime environments, and support services. In January 2023, Oracle introduced a new licensing framework for Oracle Java SE, announcing that the Java SE Universal Subscription would provide customers “a simple, low-cost monthly subscription that includes Java SE Licensing and Support for use on Desktops, Servers or Cloud deployments.” Industry experts quickly noted that even enterprises with minimal Oracle Java usage could be billed based on their total headcount—a significant shift from prior terms. Gartner estimated that this per-employee subscription model costs two to five times more than the legacy pricing structure.

Another heavily scrutinized mechanism is the Unlimited License Agreement. Some licensing advisors argue that this all-you-can-eat option delivers poor value, locks customers into the ecosystem, and restricts their ability to adopt alternative products. Oracle defends the agreement, stating it provides flexibility and strong value. The EC formally accepted SAP’s commitments in July after launching an investigation into allegations that the German vendor had stifled competition in the aftermarket for maintenance and support of its on-premises ERP software. Gartner welcomed the resolution, noting that the commitments expanded customer options for legacy SAP applications by establishing third-party support as a viable alternative to costly migrations. Support for certain older SAP products is scheduled to conclude in 2027.