An in-depth phase 2 investigation was launched into the deal by the EC in August 2023 due to concerns that the merger would stifle competition in the global markets for the supply of interactive product design software and for digital asset creation tools
Adobe to face EU antitrust warning over its $20bn acquisition of Figma. (Credit: Coolcaesar/Wikimedia Commons)
Adobe’s previously announced $20bn acquisition of web-first collaborative design platform Figma is reportedly expected to be issued an antitrust warning from the European Union (EU) in the coming days.
The EU’s new move would increase pressure on the US-based computer software company to offer remedies, reported Reuters, citing three undisclosed sources with knowledge of the matter.
The European Commission (EC) is preparing a statement of objections to send to the companies in the coming days, the publication wrote.
In August this year, the EC launched an in-depth phase 2 investigation into the deal under the EU merger regulation.
The regulator initiated the probe due to concerns that the proposed merger 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 investigation, the EC found that the acquisition will harm competition for the supply of interactive product design tools by removing a significant competitive force.
The Commission also said that the deal will lessen competition in the supply of digital asset creation tools by eliminating Figma’s existing constraining impact on Adobe’s digital asset creation tools.
Furthermore, the EC believed that the deal would limit the web-first collaborative design platform’s potential growth into an effective competitor to Adobe’s asset creation tools.
Adobe announced the cash and stock transaction in September 2022.
Following the closing of the acquisition, Adobe expects to have a huge, fast-growing market opportunity as well as capabilities to bring considerable value for shareholders, customers, and the industry.
The company also intends that the web-based, multi-player capabilities of Figma will speed up the delivery of its Creative Cloud technologies on the web.