Nov 15, 2023 11:20:00

It turns out that EU regulators plan to file a lawsuit for violation of antitrust laws regarding Adobe's 3 trillion yen acquisition of Figma

Adobe, which develops creative tools such as Photoshop and Illustrator, announced that it will acquire the design management tool '

Figma ' for $20 billion (approximately 3 trillion yen) in 2022. However, it was reported that EU regulators are investigating Adobe's acquisition of Figma for violating antitrust laws, and are planning to file a lawsuit soon.

Adobe faces EU antitrust warning over Figma deal, sources say | Reuters
https://www.reuters.com/markets/deals/adobe-faces-eu-antitrust-warning-over-figma-deal-sources-say-2023-11-14/

Adobe's $20bn deal to buy Figma faces fresh challenge in Brussels
https://www.ft.com/content/f90594df-ea36-4e7b-bf9d-1e3a16b5fd51

Adobe's $20 billion Figma acquisition faces anti-competition charges from EU regulators | AlternativeTo
https://alternativeto.net/news/2023/11/adobe-s-20-billion-figma-acquisition-faces-anti-competition-charges-from-eu-regulators/

Figma is a design management tool that allows multiple people to create app or web page prototypes at the same time and share ideas. Adobe is also developing a design tool ``Adobe XD'' with functions similar to Figma, but in September 2022 it was announced that Adobe had agreed to acquire Figma for $20 billion. The $20 billion amount is approximately 50 times Figma's annual recurring profit and approximately twice the valuation given in the 2021 private funding round.

Adobe acquires the design tool 'Figma' for over 2 trillion yen, the Figma brand is scheduled to continue - GIGAZINE

However, concerns have been raised that Adobe's acquisition of Figma may lead to fewer design software options and the exclusion of competitors. As a result, the US Department of Justice and EU regulatory authorities are investigating whether this acquisition constitutes a violation of antitrust laws.

EU to investigate violation of antitrust laws regarding Adobe's acquisition of design tool 'Figma' - GIGAZINE

Then, on November 14, 2023, Reuters and the Financial Times reported that Adobe's acquisition of Figma will be sued by EU regulators in the coming days for violation of antitrust laws.

According to the Financial Times, as of June 2023, the EU's executive body, the European Commission, said that the Adobe-Figma deal 'could have a significant impact on competition in the market for interactive product design and whiteboard software.' 'There is,' he claimed. 'EU authorities are increasingly concerned that the deal is a 'killer takeover', where a large company buys a smaller company to eliminate a competitor,' says the Financial Times.

Three people contacted by Reuters said the European Commission plans to send notices of objection to companies in the coming days. Reuters said: 'Some companies prefer to wait for a letter of objection to understand the exact regulatory issues before offering concessions.'

The Financial Times asked those involved in this matter for comment, but the European Commission and Figma refused to comment, and Adobe did not immediately respond.