The European Commission launched an intensive inquiry into Adobe's proposed takeover of Figma, fearing the merger could stifle competition in interactive product design software and digital asset creation tools markets.
"The Commission closely cooperated with other competition authorities during the initial investigation and will continue such cooperation during the in-depth investigation," the European Commission said in an Aug. 7 release.
The decision to investigate comes under the purview of the E.U. Merger Regulation. According to Reuters, the U.S. Department of Justice and the U.K. competition agency are also investigating the deal.
The Commission's preliminary examination has raised apprehensions about the potential implications of the merger on competition, the release reported. Notably, the Commission is worried about the possible diminishment of competition in the global markets for interactive product design tools.
Figma currently holds a strong market leadership position, and Adobe is one of its prominent competitors. The merger could eliminate a crucial competitive force in this sector, leaving limited room for other players to make timely and credible entries into the market, according to the release.
Furthermore, the Commission expressed concerns about the supply of digital asset-creation tools. The acquisition could impact the competitive landscape by removing Figma's influence on Adobe's digital asset creation tools, the release noted. Additionally, the merger might hinder Figma's future growth potential as a competitor to Adobe's asset creation tools.
The investigation will also examine whether the merger might lead to the exclusion of rival providers of interactive product design tools through the bundling of Figma with Adobe's Creative Cloud suite, the release reported.
The proposed acquisition was officially submitted for review June 30. The Commission has a deadline of Dec. 14 to decide, according to the release. The outcome of the ongoing investigation will be keenly observed by stakeholders and industry participants, as it has the potential to shape the competitive landscape within the realms of interactive product design software and digital asset creation tools on a global scale.
