Oracle's Licensing Terms Face EU Antitrust Scrutiny Similar to SAP Case
European Union antitrust regulators are examining Oracle Corporation’s (NYSE:ORCL) licensing practices, following a similar case involving SAP SE (NYSE:SAP), which recently settled with the EU by making it easier for customers to switch providers. The European Commission is gathering information from third parties but has not yet launched a formal investigation into Oracle. In July 2026, SAP avoided potential fines of up to 10% of its global revenue by offering concessions rather than facing penalties. Oracle's current growth strategy focuses on cloud and AI services, with significant contracts in place with companies like OpenAI, Meta, and AMD. The company reported $638 billion in remaining performance obligations and expects total revenue growth between 27% to 29% for fiscal 2027. However, the licensing scrutiny could pose a challenge if regulators demand similar concessions as those made by SAP. The potential regulatory changes may weaken Oracle’s pricing power and customer lock-in strategies traditionally used in software sales. This comes at a time when Oracle is heavily investing in AI infrastructure, with expected capital expenditures of up to $95 billion for fiscal 2027.
Topics: EU antitrust regulation licensing practices Oracle SAP