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Adobe’s $20 billion acquisition of Figma is under threat from the European Union

  • November 20, 2023
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Adobefor a long time Figma prepares for the purchase. It is also known that the company made an offer of 20 billion dollars for this. European Commissionimmediately after

Adobefor a long time Figma prepares for the purchase. It is also known that the company made an offer of 20 billion dollars for this. European Commissionimmediately after information about this agreement emerged, August 7He started an investigation in . The first results of this research have been published. European Commission, the agreement will hinder competition On this basis, he gave Adobe an official warning

According to the EU, competition will be damaged if Adobe buys Figma

According to the report containing the commission’s initial investigation results, the acquisition of Figma by Adobe, interactive design toolsin terms of vector editing tools and raster editing tools “can significantly reduce competition in global markets.”

The Commission has communicated its competition concerns to Adobe with a notice of objection. According to EU officials, this is from Figma on Adobe It means there is already leverage. According to the committee, Figma and its applications are from Adobe Illustrator and Photoshop It has the potential to become tools that can compete with other programs.

On the other hand, this statement from the European Commission is the EU investigation not the exact result. To complete the investigation February 5, 2024 will be waited until the date. Adobe and Figma will be able to respond to the above objections. If necessary, companies can appear before the committee to defend themselves. So far, Adobe and Figma have not raised any antitrust concerns.

One of the highlights of the investigation was that the application called Adobe XD was discontinued after the agreement decision. Under competition rules, a company cannot suddenly discontinue its own products to avoid competing with the new company it is buying. Adobe, Also in Great Britain and the US struggles with similar controls.

Source: Web Tekno

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