Adobe introduced its plans to accumulate the product design platform Figma for about $20 billion in September 2022. The deal has already confronted criticism for being overpriced and for the similarity between Figma and Adobe’s product design platform, Adobe XD. The corporate has already began to section out the Adobe XD platform from normal availability after saying the deal. Nonetheless, regulators are involved that this deal will give Adobe management over one of many few options within the product design software program market. The regulators are additionally anxious that such a monopoly might finish competitors and innovation.
The merger deal is presently being assessed within the US and the UK and now the European Union has additionally boarded the bandwagon. The EU is launching an in-depth antitrust investigation into the Adobe-Figma acquisition deal.
Why EU is investigating the deal
EU has warned that the deal may “scale back competitors within the world markets for the provision of interactive product design software program and digital asset creation instruments.” The European Fee is about to resolve on its subsequent steps by December 14. The investigation will assist the EU to resolve if the deal ought to be permitted, blocked from going forward, or ought to be given approval if the EU’s early considerations develop into groundless.
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In a press launch, the European Fee detailed the deal’s potential affect on the provision of interactive product design instruments and digital asset creation instruments as its major concern. The Fee may even examine if bundling Figma with Adobe’s Artistic Cloud suite has the potential to have an effect on rival software program suppliers.
The European Fee additionally talked about that the investigation into the merger deal has been requested from at the very least sixteen member states. The Fee stated that based mostly on data offered by these international locations the deal threatened to “considerably have an effect on competitors out there for interactive product design and whiteboarding software program.”
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