Oracle licensing practices under EU antitrust regulator scrutiny, source says

• The EU is seeking information from third parties about Oracle's licensing practices, which could lead to a formal case or be dropped if no wrongdoing is found
• SAP settled a similar case in July 2025 by making it easier for customers to switch to rival providers or end contracts, avoiding fines of up to 10% of global annual turnover
• No formal investigation has been opened against Oracle yet, though the Commission continues monitoring potential anticompetitive conduct in the cloud sector

Summary

The European Commission is scrutinizing Oracle's licensing practices for potential antitrust violations, according to a source familiar with the matter. EU regulators are currently gathering information from third parties to determine whether to formally pursue a case against the U.S. cloud computing company.

This investigation mirrors a recent case involving German competitor SAP, which settled with the European Commission in July 2025. SAP agreed to concessions making it easier for customers to switch to rival service providers or terminate contracts, thereby avoiding a potential fine of up to 10% of its global annual revenue.

The Commission spokesperson confirmed that while regulators continue monitoring potential anticompetitive practices and abusive conduct in the cloud computing sector, no formal investigation has been launched against any company at this stage. The information-gathering phase will help determine whether sufficient evidence exists to warrant further action.

Oracle has not yet responded to requests for comment on the matter. The news was initially reported by MLex before being confirmed by Reuters.

Market Implications:

This scrutiny represents growing regulatory pressure on major cloud computing providers in the EU, particularly around licensing practices that may lock customers into specific platforms. The SAP precedent suggests Oracle could face similar demands to modify its licensing terms or risk substantial fines. Investors should monitor developments closely, as formal antitrust proceedings could impact Oracle's European operations and revenue streams. The broader cloud computing sector may face increased regulatory oversight as competition authorities seek to promote market flexibility and prevent vendor lock-in practices.