Adobe, Figma Deal Faces EU Antitrust Probe Post Concerning Reviews

Adobe said it has received overwhelmingly positive feedback on the deal from customers worldwide.

Adobe, Figma Deal Faces EU Antitrust Probe Post Concerning Reviews

Figma's web-based collaborative platform for designs is popular among tech companies

Highlights
  • Tech deals have recently drawn sharp antitrust regulatory scrutiny
  • The deal could allow Adobe to restrict competition in the global markets
  • EU regulator would decide by December 14 whether to clear or block deal
Advertisement

Adobe's $20 billion (nearly Rs. 1,65,550 crore) bid for cloud-based designer platform Figma could reduce competition in global markets for interactive product design tools and also shut out rivals, EU antitrust regulators said on Monday.

The European Commission said it opened a full-scale investigation into the deal after a preliminary review triggered concerns, confirming a Reuters story last month.

Tech deals have recently drawn sharp antitrust regulatory scrutiny amid fears that some bigger companies may be acquiring rival start-ups to shut them down.

Figma's web-based collaborative platform for designs and brainstorming is popular among tech companies including Zoom Video Communications, Airbnb and Coinbase.

The deal would remove an important rival and could allow Photoshop maker Adobe to restrict competition in the global markets for supply of interactive product design tools, the EU antitrust watchdog said.

It said the acquisition could also affect Figma's potential for growth into an effective competitor to Adobe's asset creation tools and effectively reduce competition in interactive product design tools by bundling Figma with Adobe's Creative Cloud suite.

"With our in-depth investigation we aim to ensure that users continue to have access to a wide pool of digital creative tools to choose from," European Commissioner for Competition Margrethe Vestager said in a statement.

Adobe said it has received overwhelmingly positive feedback on the deal from customers worldwide.

"We remain confident in the merits of the case as Figma's product design is an adjacency to Adobe's core creative products and Adobe has no meaningful plans to compete in the product design space," the company said in a statement.

"We look forward to establishing these facts in the next phase of the process and successfully completing the transaction."

The EU competition enforcer said it would decide by December 14 whether to clear or block the deal.

© Thomson Reuters 2023

 


Samsung launched the Galaxy Z Fold 5 and Galaxy Z Flip 5 alongside the Galaxy Tab S9 series and Galaxy Watch 6 series at its first Galaxy Unpacked event in South Korea. We discuss the company's new devices and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2024 hub.

Further reading: Adobe, Adobe Photoshop, Adobe-Figma
Crypto Scammers Fishing Victims on Android, iOS Via ChatGPT, Other AI Tools: Sophos
Indian-Origin Vaibhav Taneja Named New Tesla CFO as Zachary Kirkhorn Steps Down
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »