Merger Turmoil: EU Commission’s In-depth Probe into Adobe’s $20 Billion Move
EU Launches Investigation into Adobe’s $20 Billion Takeover of Figma
As the EU competition regulator, the European Commission has initiated an investigation into Adobe’s proposed $20 billion acquisition of Figma, a US software firm. This move follows scrutiny from the British antitrust authority, which has cautioned that the deal could face opposition if it is deemed detrimental to competition or innovation.
The European Commission expressed concerns that the merger might diminish competition in the global markets for interactive product design software and digital asset creation tools. The commission has allocated 90 days for a comprehensive investigation after presenting its initial apprehensions.
Adobe’s offer to acquire Figma, which was announced in September 2022, involves a combination of cash and stock. Adobe is renowned for its video and image editing software such as Photoshop and Premiere, while Figma specializes in a collaborative web-based product design tool.
Although both the Brussels and London antitrust regulators are apprehensive about potential competition reduction in the sector, neither entity has sought to block the acquisition. Instead, the UK’s Competition and Markets Authority (CMA) has urged Adobe to propose solutions to address these concerns.
