Adobe's $20 Billion Figma Deal Faces EU Antitrust Probe

Adobe's $20 Billion Figma Deal Faces EU Antitrust Probe

Adobe Inc.'s proposed $20 billion takeover of design firm Figma Inc. potentially risks a lengthy European Union (EU) probe after the bloc's antitrust watchdog warned of potential concerns over the deal.

According to EU it received requests from various national regulators to look into the deal, even though it falls below the normal revenue thresholds to warrant an EU-level review.

The EU stated that the deal could "significantly affect competition" in the market for interactive product design and whiteboarding software. The agency will order Adobe to notify the transaction as the companies cannot go ahead with the deal without getting clearance from the EU.

In September, 2022 the deal between Adobe and Figma was announced and held the largest price tag for a private software maker ever.

A Figma spokesperson in a statement said, "We look forward to working constructively with the European Commission to address its questions and bring the review to a timely close."

An Adobe spokesperson said the firm was in discussions with regulators in the US, UK and EU and still expects the transaction to close in 2023.

The Adobe takeover is also facing a lengthy review by the US Justice Department. The UK's Competition and Markets Authority was looking at the deal in its December earnings call, although no official probe has been opened, stated Adobe.

Adobe, the maker of products such as Photoshop and Illustrator, is seeking to increase its user base to more casual consumers with the Figma acquisition.