EU seeks information on Oracle licensing practices

EU antitrust regulators are quietly widening scrutiny of Oracle’s cloud software licensing, following a parallel move against SAP where concessions were made to ease switching and termination. A Brussels information-gathering exercise, still described by officials as preliminary with no formal investigation yet, aims to determine whether Oracle’s terms pose anti-competitive risks in the cloud market. Regulators emphasize that gathering information from customers, rivals, and market participants does not itself prove wrongdoing and could end without action. The inquiry highlights the broader challenge of cloud licensing, where complex contracts and exit costs can deter customers from switching providers, a concern long-standing with Oracle’s databases and their embedded role in critical systems. The comparable SAP case provides a benchmark, showing regulators may seek to address switching barriers rather than levy penalties, potentially avoiding fines while encouraging contract changes. The investigation underscores the EU’s increasing focus on how licensing terms affect competition in cloud computing, with Oracle and SAP serving as the latest test cases for market dynamics and consumer impact.