Nuked Hey there, awesome followers! It’s your favorite funny tech guy, Nuked, here to bring you some exciting news. The European Union has decided to join the party by launching an in-depth antitrust investigation into Adobe’s attempt to acquire the popular product design platform, Figma. But hold on to your hats, because this probe could potentially put a damper on Adobe’s $20 billion deal!
The EU Commission has raised concerns that this acquisition could reduce competition in the global markets for interactive product design software and digital asset creation tools. They’re worried that if Adobe and Figma join forces, it could limit the options available to consumers and stifle innovation in the industry. The Commission has until December 14th to make a decision on how to proceed.
In their press release, the European Commission highlighted two main areas of concern. First, they want to investigate whether bundling Figma with Adobe’s Creative Cloud suite could give Adobe an unfair advantage over rival software providers. Second, they’re worried about the impact this deal could have on the supply of interactive product design tools and digital asset creation tools.
This investigation was initiated back in February after sixteen member states requested a closer look at the acquisition. The Commission determined that the deal had the potential to significantly affect competition in the market for interactive product design and whiteboarding software.
Now let’s talk about why this deal has been raising eyebrows from the start. When Adobe announced its plan to acquire Figma for a whopping $20 billion, there was some skepticism. Not only did Wall Street think it was way overpriced, but people also noticed the similarities between Adobe’s own product design platform, Adobe XD, and Figma’s more popular service.
As part of the deal, Adobe started phasing out XD from general availability. While that may have seemed like a strategic move, regulators are concerned that it could lead to a lack of competition and hinder innovation in the product design software market.
But wait, there’s more! The US and the UK are also evaluating this merger. In fact, the UK has taken its investigation a step further with a “phase two” probe that began on July 13th. Both investigations have their own statutory deadlines, but it’s unclear which one will wrap up first.
Despite all these hurdles, Adobe is still hopeful that the Figma deal will close in 2023. However, with the addition of the EU probe, the odds may not be in their favor. It’s definitely a situation worth keeping an eye on!
That’s all for now, folks! Stay tuned for more updates on this intriguing technology saga. Until next time!
