Figma reviewing EU's objections against $20 billion Adobe buyout bid
Reuters
Published Nov 17, 2023 04:08PM ET
Updated Nov 17, 2023 05:45PM ET
(Reuters) -Figma said on Friday it was carefully reviewing the EU competition watchdog's statement of objections related to Photoshop maker Adobe (NASDAQ:ADBE)'s proposed $20 billion bid to buy out the cloud-based designer platform.
The EU agency had in August opened a full-scale investigation into Adobe's proposal to buy Figma, saying that it could reduce competition in global markets for interactive product design tools and shut out rivals.
Adobe's proposition comes amid heightened regulatory scrutiny around the world on Big Tech acquisitions which boost dominant companies' market power or those involving start-ups seen as nascent rivals.
The European Commission said in a statement on Friday that it has informed Adobe of its preliminary view and has conducted a wide-ranging investigation to understand the potential impact of the deal.
The transaction could create a dominant player of interactive product design tools by combining Figma, a clear market leader, and one of its largest competitors Adobe, the commission said.
San Francisco-based Figma's web-based collaborative platform for designs and brainstorming is used by tech companies such as Zoom Video Communications (NASDAQ:ZM), Airbnb and Coinbase (NASDAQ:COIN)
Figma said it would continue to engage in constructive conversations focused on the benefits of its deal with Adobe.
Adobe's chief counsel Dana Rao told Reuters on Wednesday that the company is open to proposing remedies to resolve regulatory concerns.
Britain's competition regulator is also conducting an in-depth probe into the deal.
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Written By: Reuters
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