Adobe's $20 billion bid for Figma in danger after EU warning

American multinational-owned company Adobe’s $20 billion bid for Figma is in danger after a warning from the European Union (EU).

The European Commission has published a statement of objections to Adobe highlighting its anti-competitive concerns about the deal.

Adobe’s $20 billion bid for Figma in peril after EU warning https://t.co/tnZiLgsdXi
— The Verge (@verge) November 20, 2023

The officials of the EU have launched a formal anti-trust complaint against Adobe about its $20 billion offer for cloud-based product design platform Figma. It followed an in-depth investigation that began on August 7.

The European Commission issued an early conclusion on November 17 that if the deal is approved. It may significantly reduce competition in global markets. Or the supply of interactive product design tools, vector editing tools, and raster editing tools.

Adobe's $20 billion bid for Figma in danger after EU warning — *Adobe’s $20 billion bid for Figma in danger after EU warning*

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The EU Commission has issued an objection statement explaining its competition concerns. This shows that EU officials believe Figma already has a “significant limiting influence” over Adobe’s Illustrator and Photoshop editing tools.

Figma is significantly likely to grow into a competitive force within the market for vector and raster editing tools without the merger.

The EU still has until February 5th to make a final decision on the proposed Adobe-Figma merger. The statement of objection does not prejudge the outcome of the EU’s investigation because it has a deadline of 5th February.

Adobe and Figma can now respond in writing to the objections offering concessions that address the specific regulatory concerns of EU and requesting a hearing. Following this, the Commission will decide if the transaction violates antitrust law.