The European Union rejects Adobe’s takeover of Figma. The union considers the takeover to be anti-competitive. The two parties now have the opportunity to comment in order to save the takeover.

Adobe’s acquisition of Figma could stifle competition in the market. The European Commission has come to this preliminary conclusion. The Commission is investigating the $20 billion takeover over concerns it violates European antitrust rules. At the beginning of August, the EU launched an extensive Phase 2 investigation into the takeover. At the end of September, it was announced that the deadline for the investigation had been postponed until further information was requested from the two parties.

Competition

The preliminary conclusion is an important step in the investigation, which runs until February 5th. The committee believes that without acquisition by rival Adobe, Figma has the potential to become a significant competitor to Adobe in vector and raster editing tools. Figma would already have an important impact on Adobe. The EU fears that the takeover would reduce competition on the global market.

Adobe has already started phasing out Adobe XD. This product competes with Figma. The EU sees this action as evidence of reduced competition as a result of the deal.

Adobe, for its part, believes that the acquisition can be carried out because Figma’s products would complement those of Adobe itself. Figma also suggests that it is optimistic. Both parties now have the opportunity to put forward arguments to address the European regulator’s concerns. You can also adjust the transfer agreement.

The EU is not the only body considering the takeover plans. A detailed investigation is also underway in Great Britain and the USA is reportedly preparing its own antitrust proceedings.