EU to Decide on Adobe's $20 Billion Acquisition of Figma
That's right. The European Commission, the EU's antitrust regulator, will announce its decision on whether to clear Adobe's $20 billion acquisition of Figma on August 7.
The Commission has been conducting a preliminary review of the deal since February, and it has warned that the deal could significantly affect competition in the market for interactive product design and whiteboarding software.
Adobe is a major player in the design software market, with products such as Photoshop, Illustrator, and InDesign. Figma is a newer entrant to the market, but it has quickly gained popularity due to its web-based platform and collaborative features.
The Commission is concerned that the acquisition of Figma by Adobe could give Adobe too much market power. Adobe could use its market power to raise prices, reduce innovation, or make it more difficult for other companies to compete.
Adobe has argued that the acquisition will not harm competition. The company says that Figma is not a major competitor to Adobe, and that the acquisition will actually help to promote innovation in the design software market.
The Commission will have to weigh the arguments of both Adobe and the Commission's competition lawyers before making a decision. The decision is likely to be closely watched by other companies in the design software market, as it could set a precedent for future acquisitions in the industry.
In the meantime, Adobe and Figma are continuing to operate as separate companies. The deal is not expected to close until the Commission has cleared it.
What's Your Reaction?
