European Union antitrust regulators have resumed their examination of Adobe’s (ADBE.O) proposed $20 billion acquisition of Figma, a cloud-based designer platform. According to a European Commission filing released on Friday, the regulators have set a decision deadline of February 5, 2024, as they continue to scrutinize the deal.
This development comes after the EU watchdog halted its investigation last month, pending the receipt of requested information from both Adobe and Figma. The European Commission’s concerns are related to the potential impact of the merger on competition in the global market for interactive product design tools and whether it might eliminate a significant competitor to Adobe.
In light of these concerns, it is anticipated that Adobe may need to offer remedies to address the issues raised by the EU antitrust regulators before the deal can receive regulatory approval. The precise nature of these remedies will likely be a key focus as the examination proceeds.
This merger is part of Adobe’s strategic efforts to expand its portfolio and capabilities in the cloud-based design and creative software spaces. The outcome of the European Commission’s investigation will play a pivotal role in determining the fate of this significant acquisition and its potential consequences for competition in the industry.