The European Commission sees Adobe’s takeover of Figma as a threat to competition. The $20 billion deal could fall through, according to informed sources.
Adobe continues to face increased scrutiny from regulators who are reviewing its acquisition of cloud-based design platform Figma, The Verge reported.
This time, the European Commission has sent an official antitrust complaint to Adobe. Representatives of the main industrial regulator of the European Union believe that the deal will harm competition.
According to the European Commission, Adobe’s $20 billion acquisition of the Figma platform will “significantly reduce competition in global markets” in the supply of interactive product design tools, as well as vector and raster editing tools.
The regulator’s preliminary opinion outlined concerns that, if completed, the Adobe-Figma deal would significantly harm competition. The regulator stressed that Figma has a “significant restraining effect” on Adobe Illustrator and Photoshop editing tools and is “very likely” to continue to increase its competitive strength in the market for vector and bitmap editing tools.
The current statement from the European Commission is preliminary and does not predetermine the outcome of the full investigation, which should be completed by February 5, 2024.
Adobe and Figma can respond to the regulator’s signal by proposing certain changes to the terms of the deal so that the European Commission does not think it will harm competition.
Representatives of Adobe and Figma hope to convince regulators that the deal will not harm competition in the vector and bitmap editing market, according to comments from their representatives.