EU commission launches probe into $20 billion Adobe merger
Companies have been warned that it could be blocked if it is found to hurt competition or innovation
August 07, 2023
LONDON: Acting in its role as the EU competition regulator, the European Commission on Monday launched an investigation into US software firm Adobe’s planned $20 billion takeover of Figma.
It is pertinent to mention here that the tie-up has already come under scrutiny from the British anti-trust authority, and the companies have been warned that it could be blocked if it is found to hurt competition or innovation.
The commission said, EU officials are "concerned that the transaction may reduce competition in the global markets for the supply of interactive product design software and for digital asset creation tools", AFP reported.
It has given itself 90 days to carry out a more in-depth investigation after unveiling its "preliminary concerns".
Adobe announced the cash and stock offer for fellow American developer Figma in September 2022.
Adobe is best known for its video and picture editing software like Photoshop and Premiere, while Figma has a collaborative web-based product design tool.
Anti-trust regulators in both Brussels and London are concerned the takeover could reduce competition in the sector -- but neither have yet attempted to block the deal.
Instead, last week Britain’s CMA asked Adobe to come up with suggestions to address the concerns.
