Oracle’s software licensing practices are drawing scrutiny from European Union antitrust regulators, according to a person familiar with the matter, potentially opening a new competition challenge for the US cloud computing giant.
The European Commission has been seeking information from third parties about Oracle’s licensing practices, the person said. The information-gathering exercise could help regulators determine whether there is evidence of anticompetitive conduct or whether the matter should be closed without further action.
The Commission stressed that no formal investigation has been opened against Oracle at this stage.
“The commission will continue to monitor possible further anticompetitive practices and abusive conduct in this sector,” a spokesperson said, adding that there was currently no formal investigation into any company.
Oracle did not immediately respond to a request for comment.
EU cloud licensing scrutiny expands
The scrutiny comes shortly after the European Commission reached an agreement with German software company SAP over similar competition concerns.
In July, SAP offered measures designed to make it easier for customers to switch to competing service providers or terminate their contracts. The concessions allowed SAP to avoid a potential EU antitrust fine that could have reached 10% of its global annual turnover.
The Commission’s focus reflects growing regulatory attention on licensing and contractual practices in the cloud and enterprise software markets, where customers can face significant costs or technical barriers when moving between providers.
For Oracle, any escalation could create additional regulatory pressure as European authorities continue examining whether established technology companies are using licensing arrangements or other commercial practices to restrict competition.
