The European regulator has initiated the probe due to concerns that the proposed deal would stifle competition in the global markets for the supply of interactive product design software as well as for digital asset creation tools
EC to undertake phase 2 probe into Adobe’s $20bn acquisition of web-first collaborative design platform Figma. (Credit: Mountain/Wikimedia Commons)
The European Commission (EC) has launched an in-depth phase 2 investigation into Adobe’s previously announced $20bn acquisition of web-first collaborative design platform Figma, under the European Union (EU) merger regulation.
The regulator has initiated the probe due to concerns that the proposed deal would stifle competition in the global markets for the supply of interactive product design software as well as for digital asset creation tools.
In its preliminary phase 1 investigation, the EC found that the deal will impact competition for the supply of interactive product design tools by eliminating a significant competitive force.
Besides, the Commission believes that the proposed merger will restrict competition in the supply of digital asset creation tools by removing Figma’s existing constraining impact on Adobe’s digital asset creation tools.
The deal will also restrict Figma’s potential growth into an effective competitor to Adobe’s asset creation tools, said the regulator.
EC Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “Adobe and Figma are two leading providers of software for the creative community in the digital sphere. Many users and businesses rely on their digital design tools to excel in their work.
“With our in-depth investigation we aim to ensure that users continue to have access to a wide pool of digital creative tools among which to choose.”
The EC stated that it will examine if the deal would foreclose other suppliers of interactive product design tools through the integration of Figma into Adobe’s creative cloud portfolio.
Furthermore, the regulator said that the phase 2 probe will determine the accuracy of its initial competition-related concerns regarding the deal.
The Commission has set itself a deadline of 14 December 2023 to take a decision on the proposed acquisition.
Adobe announced the cash and stock deal in September 2022.
Separately, the UK Competition and Markets Authority (CMA) has published the full text of the phase 1 decision on the proposed merger.
According to the CMA, the deal restricts competition in the supply of screen design software as well as several types of creative design software, namely vector editing, raster editing, video editing, and motion design.