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Diageo faces US$68m payout after SAP court loss

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Diageo has said it is reviewing its options after it lost a court battle with a software supplier over a GBP54.5m (US$68m) bill.

SAP demanded more money from Diageo for the use of its sales platform

SAP demanded more money from Diageo for the use of its sales platform

Last week, the UK's High Court of Justice ruled that Diageo should pay the amount to SAP as part of additional licencing costs for the use of an SAP sales platform, called MySap. Diageo already licenses MySap from SAP, but SAP demanded more money after it claimed Diageo had expanded its user base indirectly.

The judge sided with SAP, and in a ruling said the company was entitled to additional licence and maintenance fees valued at GBP54,503,578.

In a statement, Diageo said it was disappointed with the judgement of the Technology and Construction Court. "We are reviewing the judge's comments and are considering our next steps," it said.

The complex case centres on the number of Diageo's named users registered with SAP for the use of its Salesforce service. SAP claimed the named-user base jumped to include all of Diageo's customers after Diageo deployed two new third-party systems in 2012.

As of November 2015, Diageo had already paid between GBP50m and GBP61m for the use of SAP's software, court records said.

Last year, Diageo accepted a KRW1.2bn (US$1m) fine from South Korean authorities over payments to on-trade venues.


Sectors: Spirits

Companies: Diageo

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