Jul 25, 2023 19:00:00

EU regulators will soon launch detailed investigation into Adobe's acquisition of Figma for more than 2.8 trillion yen

Regarding the acquisition of

Figma , a design tool development company by Adobe that develops numerous creative tools such as Photoshop and Premiere Pro, European Union (EU) regulators are suspected of violating the antitrust law, and will soon start a detailed investigation It was reported.

Adobe's $20 Billion Figma Takeover Faces EU Antitrust Probe - Bloomberg
https://www.bloomberg.com/news/articles/2023-07-24/adobe-s-20-billion-figma-deal-faces-eu-probe-as-scrutiny-grows

Adobe's Figma deal faces full-scale EU antitrust probe, sources say | Reuters
https://www.reuters.com/markets/deals/adobes-figma-deal-faces-full-scale-eu-antitrust-probe-sources-say-2023-07-24/

In September 2022, Adobe announced that it would acquire Figma for $20 billion (about 2.83 trillion yen). Figma is developing a design management tool that allows multiple people to create prototypes of applications and web pages at the same time and share ideas, and Adobe is also developing 'Adobe XD' with similar functions.

Adobe acquires design tool 'Figma' for over 2 trillion yen, Figma brand will continue - GIGAZINE

In response to this acquisition, the US Department of Justice is preparing to sue Adobe for alleged antitrust violations.

It is reported that the US Department of Justice is preparing a lawsuit as Adobe's acquisition of Figma violates antitrust laws - GIGAZINE

Following this, it was reported that European Union (EU) regulators were preparing to investigate Adobe's acquisition of Figma. And newly, Bloomberg and Reuters report that 'a detailed investigation by EU regulators is imminent.'

In the EU, an investigation period called 'Phase 1' or 'Phase 2' is set up to determine whether the acquisition of a company constitutes a violation of the Antimonopoly Act. The acquisition will go through a preliminary review period and is expected to move to Phase 2 investigation soon. Phase 2 will take about 90 business days, so it is expected that the investigation period will be longer than Phase 1. Regulators typically provide remedies to address competition concerns, but they may grant unconditional approval if the concerns prove unfounded.

However, according to information Bloomberg has obtained from people familiar with the deal, a detailed investigation by EU regulators could begin soon, as Adobe has not proposed any remedies to correct potential competition concerns.

In early 2023, the European Commission, the EU's executive body, warned that Adobe's acquisition of Figma ``could pose a threat to the interactive product design and whiteboard software market''. The EU regulator has announced that it plans to complete the preliminary review by August 7, 2023.

Regarding this acquisition, Bloomberg said, ``This acquisition is a big bet on the market that Figma quickly acquired, ``small and medium-sized businesses and users who use tools on a daily basis will do more creative work on the web.'' Although Adobe has introduced inexpensive and rational products for these users, most of them are still heavyweight programs for professionals.

An Adobe spokesperson said, ``We are continuing productive discussions with regulatory bodies around the world about the acquisition,'' but Figma has not responded to Bloomberg's request for comment.

In addition to this, Adobe seems to be preparing for a lawsuit to block the acquisition by the US Department of Justice.

In addition, the UK antitrust authority, the Competition and Markets Authority, announced on July 13, 2023 that Adobe would start a longer-term review because it did not present any remedies for antitrust violations. The Competition and Markets Authority plans to announce its findings by December 27, 2023.