The Federal Trade Commission is taking aim at new wave aplenty.
The agency on Wednesday filed an amended complaint against US software giant SAP, alleging that it is violating antitrust laws by selling products that enable its customers to take advantage of financial innovations.
In its new complaint, the FTC accuses SAP of artificially inflating its market share by promoting products for financial advisors that don’t provide a meaningful alternative to the traditional investment banker.
In other words, SAP is selling a product that can be used by someone who has never taken a course in finance before, yet the FTC alleges that the company is able to artificially increase its market power by giving advisers access to a new and increasingly lucrative product.
The FTC claims that SAP is using a $50bn investment fund to buy up its competitors and then charging the firms for the privilege of using the same technology.
“The FTC’s complaint seeks to stop the sale of ‘financial products’ that offer no meaningful alternative for the customer,” the complaint states.”SAP is making these products available to its own customers for free or at a reduced cost in order to increase its own market share in the market.”
The complaint cites the company’s use of its own software to offer an app that can take advantage.
It’s not the first time the FTC has sought to take on SAP.
The complaint states that in 2013, the agency seized a number of SAP products, including its online finance app.
SSA declined to comment on the latest complaint.