Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Adobe faces EU antitrust warning over Figma deal, sources say

Published 11/14/2023, 07:28 AM
Updated 11/14/2023, 10:36 AM
© Reuters. The corporate logo of software company Adobe is seen in Posa Studio school in Caracas, Venezuela October 9, 2019. REUTERS/Manaure Quintero/ File Photo
ADBE
-

By Foo Yun Chee

BRUSSELS (Reuters) - Adobe (NASDAQ:ADBE)'s $20 billion bid for cloud-based designer platform Figma is set to face an EU antitrust warning in the coming days, three people familiar with the matter said, a move that would ratchet up pressure on the Photoshop maker to offer remedies.

Tech deals around the world have recently attracted tougher antitrust regulatory scrutiny amid fears that some bigger companies may be acquiring rival start-ups to shut them down or boost their market power.

The European Commission is readying a statement of objections to send to the companies in the coming days, the people said.

Such documents or charge sheets set out the EU competition watchdog's concerns on why deals could be anti-competitive.

The EU agency opened a full-scale investigation into Adobe's proposed acquisition in August, saying that it could reduce competition in global markets for interactive product design tools and also shut out rivals.

The Commission and Adobe, which can offer remedies to stave off the EU warning, declined to comment.

Some companies prefer to wait for a statement of objections so that they know the precise regulatory worries before they offer concessions. 

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).

The Commission is due to decide on the deal by Feb. 5. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.