EU Joins Antitrust Investigation into Adobe's $20 Billion Acquisition of Figma | #DaNews

The European Union is launching a thorough antitrust investigation into Adobe's proposed acquisition of the product design platform Figma, citing concerns that the deal may "reduce competition in global markets for the supply of interactive product design software and digital asset creation tools."

The Commission has until December 14 to decide on the next steps, which could involve requiring remedies for deal approval, blocking the merger entirely, or granting approval if the EU's initial concerns are unfounded.

In a press release, the European Commission highlighted the potential impact of the transaction on the supply of interactive product design tools and digital asset creation tools as its primary concern. The Commission will also investigate whether including Figma in the Adobe Creative Cloud package has the potential to exclude rival software providers.

Adobe's bid faced early criticism not only for being deemed overly expensive by Wall Street but also due to the similarity between Adobe's product design platform, Adobe XD, and Figma's more popular service. Adobe began phasing out XD from general availability after announcing the deal, but regulators are concerned that giving Adobe control over one of the few alternatives in the product design software market could stifle competition and innovation.

💡Insight for Entrepreneurs:

This news underscores the importance of considering the impact of acquisitions and mergers on the market and competition. Entrepreneurs should be aware of antitrust regulations and be prepared to face scrutiny when seeking to acquire or merge with other companies. Additionally, the similarity between products and services can raise concerns for regulators, so it's essential for growing startups to be aware of how their strategic moves can affect market competition. Staying informed about antitrust regulations and practices will help entrepreneurs make sound business decisions and avoid unnecessary regulatory hurdles in their quest for growth and success in the competitive business landscape.

Source: The Verge