Oracle licensing practices draw EU attention
Fresh from getting SAP to agree to some concessions, the EU has turned its sights to Oracle's cloud licensing practices - although no official investigation has begun.
Published on 4th September 2026
The European Commission is collecting information on how US technology giant Oracle licenses its software for cloud use.
A person familiar with the matter told Reuters EU antitrust regulators were seeking information from third parties about Oracle’s licensing practices.
However, the information-gathering exercise does not mean the company is formally under investigation. Regulators could use the evidence to build a case, or decide to take no further action if they find no wrongdoing.
The Commission has taken a similar approach towards German software company SAP, which agreed concessions in July to address concerns over its licensing practices.
The Commission has been cautious about confirming the details of its work on Oracle. A spokesperson said the regulator would continue to monitor potential anti-competitive practices and abusive conduct in the cloud sector, but stressed that there was currently no formal investigation into any company.
Oracle has faced complaints about its licensing and software audit practices for years, including from European customers.
Such disputes have generally been resolved through commercial agreements rather than antitrust proceedings.
Cloud computing has changed the nature of those concerns. Licensing conditions that make it significantly more expensive to run Oracle software on a rival cloud could influence a customer’s choice of vendor.
Similarly, contracts that are difficult to terminate could make it harder for businesses to switch providers.
Oracle remains at the heart
Oracle’s databases are widely embedded in financial systems, government services and industrial applications. Many organisations have built software around them over decades, making replacements both expensive and disruptive.
That gives licensing terms considerable influence.
A customer may technically be free to move its workloads from one cloud provider to another, for example, but the economics can look very different if existing software becomes more expensive to use after the move.
The issue is particularly key because Oracle is no longer just a software company. It has expanded its own cloud infrastructure business, meaning licensing conditions affecting where Oracle software can run could also have implications for competition between cloud providers.
The European Commission has increasingly focused on switching costs and interoperability as it examines competition in digital markets.
In July, SAP agreed to make it easier for customers to leave its software and terminate contracts following similar regulatory concerns.
The agreement allowed the German company to avoid a potential fine of up to 10% of its worldwide annual turnover.
Oracle could ultimately face a similar choice: address regulators’ concerns through concessions, challenge the allegations, or persuade the Commission that its practices do not harm competition.
Microsoft's cloud practices also under scrutiny
European regulators continue to examine competition in the cloud computing market.
The Commission opened a dedicated investigation into Microsoft’s cloud licensing and interoperability practices in 2025.
The company has faced complaints from the European cloud industry over what rivals described as pricing practices and technical and economic measures that made it harder for customers to use competing services.
The Cloud Infrastructure Services Providers in Europe (CISPE), an industry group representing more than two dozen providers, had accused Microsoft of using pricing and technical restrictions to disadvantage rival cloud companies.
CISPE later withdrew its complaint in 2024 after reaching an agreement with Microsoft.
Another win for the EU?
After their success with SAP, where do you see the EU taking this one? A full on investigation, or nothing to see here? Let us know your thoughts.
Get in touchSource
Image Credit
Ratchapon Supprasert via Vecteezy