Adobe is in the spotlight after the European Comission announced that will evaluate the purchase of Figma to potential antitrust concerns. The operation, valued at 20,000 million dollars, could affect competition, which has turned on red lights in the regulatory bodies. In a Press releasethe Commission revealed that it accepted the requests presented by several countries of the bloc, who ask to review the purchase in detail.
Yes ok the transaction value does not meet the turnover thresholds established by the EU Merger Regulationthere are provisions that allow EU member countries to refer cases in which it is believed that the purchase could affect competition. Austria submitted a referral request to the Commission in accordance with Article 22 of the Regulation, which was later joined by other countries of the European Economic Area.
According to the European Commission, the purchase of Figma threatens to significantly affect competition in the interactive product design market and whiteboard software. Article 22 of the Merger Regulation establishes that the Commission may examine mergers referred to it by the regulators of the Member States. Now Adobe will have to notify the operation to the Commission and You will not be able to complete the acquisition until you obtain authorization from her.
The decision to review Adobe’s purchase of Figma comes at a time when The European Commission tries to analyze in detail the technological companies. In recent months, Big Tech has been targeted by regulations to limit its reach. The most recent case is Microsoft’s purchase of Activision Blizzard, which is facing antitrust investigations on all fronts.
Adobe will have to wait to finalize the purchase of Figma
Adobe announced the purchase of Figma for 20,000 million dollars in September 2022. The announcement caused surprise and anger in some, especially among the design community that for years has criticized Adobe’s business practices. In the legal field, some experts announced that the purchase violates Section 7 of the US Clayton Act.which prohibits mergers and acquisitions when they substantially reduce competition or tend to create a monopoly.
The creators of Photoshop tried to buy Figma on two occasions, however, the startup refused. The million-dollar offer was enough to convince Dylan Field and company, although came at the least opportune moment. In recent years, regulators have scrutinized every merger deal, which has thrown off multimillion-dollar deals like NVIDIA’s purchase of ARM and is about to do the same with Activision-Blizzard and Microsoft.
As in all antitrust investigations, Adobe and Figma stated that they will work closely with the European Commission to resolve your concerns. They also said that they are in talks with regulators in the United Kingdom and the United States with a view to closing the purchase this year.