Follow Slashdot blog updates by subscribing to our blog RSS feed

 



Forgot your password?
typodupeerror
×
Businesses EU

Adobe's $20 Billion Figma Acquisition Likely To Face EU Investigation (gizmodo.com) 22

According to a report from The Financial Times, the European Union Commission is planning an in-depth investigation into Adobe's $20 billion purchase of Figma, the popular online graphics editing and interface design application. Gizmodo reports: Back in February, the EU Commission noted that it had received numerous requests to review the business deal. The international watchdog announced that it would need to clear the proposed merger, under the justification that it "threatens to significantly affect competition in the market for interactive product design and whiteboarding software."

Now, the Brussels-based Commission will open a phase II investigation, per the FT. Generally, anti-competition probes are handled at the phase I level, which accounts for 90% of all cases, according to EU internal data. In comparison, a phase II analysis takes more time and goes deeper. By the Commission's description, a phase II investigation "typically involves more extensive information gathering, including companies' internal documents, extensive economic data, more detailed questionnaires to market participants, and/or site visits." From the start of such a probe, the regulatory body has 90 days to make a decision.

The EU Commission would not directly confirm its plans to investigate the Adobe/Figma merger. In an email, spokesperson Marta Perez-Cejuela told Gizmodo, "this transaction has not been formally notified to the Commission." Such notification is a requirement before any investigation can move forward. Commission officials requested that Adobe submit an official notification in February. Despite the Commission's lack of formal announcement, an EU probe into the acquisition is expected. Already the U.S. Department of Justice and the United Kingdom's Competition and Markets Authority are looking into the digital design tool deal. The DOJ is reportedly preparing to file an antitrust suit blocking the merger, while the UK CMA is actively investigating the acquisition, with a first decision due by the end of June.

This discussion has been archived. No new comments can be posted.

Adobe's $20 Billion Figma Acquisition Likely To Face EU Investigation

Comments Filter:

Beware of all enterprises that require new clothes, and not rather a new wearer of clothes. -- Henry David Thoreau

Working...