Adobe’s ambitious $20 billion acquisition of Figma, the cloud-based designer platform, is facing significant hurdles as European Union (EU) regulators gear up for a full-scale investigation, as reported by the Financial Times. This move stems from concerns over potential anti-competitive practices and could potentially jeopardize the entire deal, adding months of uncertainty to the equation. It highlights the global regulatory community’s apprehension that major tech companies swallowing up smaller, innovative competitors might stifle healthy competition.
Currently, Adobe finds itself in the preliminary stages of the regulatory process, engaging in constructive dialogues with regulators from Britain, the EU, and the United States to address their concerns. Meanwhile, Figma eagerly anticipates ongoing discussions with regulatory bodies. In separate statements provided to Reuters via email, both companies express their commitment to navigating the regulatory landscape effectively.
This recent development follows the Competition and Markets Authority (CMA) in the UK announcing their examination of the Adobe-Figma merger last month. Additionally, Bloomberg had previously reported in February that the US Justice Department was laying the groundwork for an antitrust lawsuit, aiming to block the acquisition.
Despite the fact that the Figma deal falls below the bloc’s revenue threshold necessitating a review, EU regulators have made it clear that Adobe must secure their antitrust approval. These regulatory roadblocks underscore the critical role played by competition authorities in ensuring a level playing field within the tech industry. The outcome of this investigation could have far-reaching implications for Adobe’s ambitious plans and the future landscape of digital design platforms.