The European Commission has delivered its verdict. She believes that the repurchase of Figma by Adobe will harm competition on the Old Continent. Both parties must find solutions to remedy this. Otherwise, the operation could fail.
Announced in September 2022 for $20 billion, the acquisition would allow Adobe to get its hands on the collaborative design tool. It would be the largest sale of a private software company in history. Very quickly, the European Commission found the operation worrying, particularly because the market does not offer an alternative that could compete with Adobe. In August, it launched an in-depth investigation into the takeover, and has just shared its findings.
A danger for competition
“ Following this in-depth investigation, the Commission reached the preliminary conclusion that the transaction could significantly reduce competition on global markets “, said the regulator. He states that Figma is considered the “ undisputed leader » interactive design tools. This merger with one of its largest competitors could therefore create a dominant player in the market.
Founded in 2016, Figma has four million users, including just under 1,000 paying customers. By removing the competitive barrier that Figma represents, Adobe would tighten its grip on editing tool offerings, allowing Photoshop or Adobe Illustrator to gain market share and further establish its dominance over its rivals.
Other regulators are also looking into the takeover
These concerns are part of the “ statement of objections » of the European Commission. This is a standard step in investigations into corporate mergers or anti-competitive practices, during which regulators inform the companies concerned in writing of what they are accused of. Subsequently, the latter can propose corrective measures to comply with the requirements of decision-makers. Figma assured that it was carefully examining the European Union (EU) text.
The European regulator is not the only one to be closely interested in this merger. The UK’s Competition and Markets Authority (CMA) and the Department of Justice’s antitrust team are also investigating. The case is judged “ complex » by the CMA, which should deliver its verdict before the end of the year.
Source : Boursorama
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