EU Antitrust Watchdog to Issue Warning to Adobe Over Figma Deal

         

Adobe’s $20 billion bid for Figma faces EU antitrust warning due to concerns about reduced competition and shut out rivals.

EU Antitrust Warning for Adobe-Figma Deal

Three sources have revealed that Adobe’s $20 billion bid for cloud-based designer platform Figma is expected to receive an antitrust warning from the European Union (EU) in the next few days. This move is a result of concerns that the acquisition could lead to reduced competition and disadvantage rival companies.

Increased Regulatory Scrutiny on Tech Deals

Recent tech deals have been under heightened antitrust regulatory scrutiny globally over fears that larger companies may be acquiring smaller start-ups to eliminate competition or strengthen their market dominance.

EU Commission’s Investigation and Concerns

The European Commission initiated a thorough investigation into Adobe’s proposed acquisition back in August, expressing apprehensions that it could potentially diminish competition in the international markets for interactive product design tools and exclude competitors.

Potential Impact on Tech Companies

Figma, based in San Francisco, provides a web-based collaborative platform for design and brainstorming, which is utilized by prominent tech firms like Zoom Video Communications, Airbnb, and Coinbase.

Upcoming Deadline and Responses

The Commission is scheduled to make a decision on the deal by February 5th. While both the Commission and Adobe have the option to propose solutions to address the EU’s concerns, they have refrained from providing any comments. Some companies prefer to await a statement of objections before offering concessions, in order to understand the specific regulatory apprehensions.

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