The European Commission has temporarily halted its investigation into Adobe’s proposed $20 billion acquisition of Figma, a collaboration design company, due to the need for additional information. The Commission activated this procedure in response to the parties’ failure to provide a key piece of information requested by the regulator. The investigation was paused on September 19 and will resume once the requested information is received for review. Adobe has not yet commented on the matter.
The European Commission’s concerns regarding the deal are centered on competition in the global markets for interactive product design software and digital asset creation tools. Figma is currently the leading provider of interactive product design tools, and the acquisition by Adobe, one of its main competitors, could potentially remove an important competitive force. The impact on other players in the market is also a key concern. In August, the regulator announced the review of the deal based on these competition concerns.
While the European Commission investigation has been paused, the Competition and Markets Authority (CMA), the UK’s antitrust agency, terminated the extension of the inquiry period into the Adobe-Figma deal in August after receiving the requested information. The CMA’s review is still ongoing and is expected to expire on December 31. Adobe, based in San Jose, California, has stated that it still anticipates the acquisition to be completed later this year.