Adobe and Figma Seek DOJ Antitrust Approval for $20 Billion Deal in Crucial Meeting
In a high-stakes development, executives and legal representatives from Adobe and Figma engaged in discussions with senior officials from the U.S. Department of Justice (DOJ) on Thursday, aiming to secure approval for their proposed $20 billion deal.
This meeting with Assistant Attorney General Jonathan Kanter marked a critical phase in the approval process, though sources emphasize that no final decision has been reached, dispelling notions of an impending lawsuit colloquially referred to as a “last rites” meeting, reported POLITICO.
The DOJ’s heightened interest in the deal is underscored by the recent inclusion of Justice Department litigation counsel in the investigative team scrutinizing the acquisition. While the precise nature of the potential case remains undisclosed, concerns within the DOJ revolve around the impact of the merger on competition. Figma, renowned for its online collaboration tool popular among designers, has positioned itself as a formidable competitor to Adobe, raising fears that the consolidation could stifle competition in the market, as reported by POLITICO.
Adobe, a Silicon Valley stalwart at 41 years old, has built a reputation as an acquisitive giant, having previously acquired key products such as Photoshop. The DOJ’s antitrust division, along with its counterpart, the Federal Trade Commission (FTC), has been taking an assertive stance against major tech deals. Notably, ongoing litigation and investigations focus on past acquisitions by industry titans like Facebook’s 2012 and 2014 purchases of Instagram and WhatsApp, as well as Google’s numerous deals in the digital advertising sector.
The unfolding situation reflects a broader trend of increased regulatory scrutiny on major technology mergers, as authorities seek to ensure fair competition and prevent potential monopolistic practices in the rapidly evolving digital landscape. As the discussions between Adobe, Figma, and the DOJ continue, the tech industry watches closely, anticipating the potential ramifications of a legal showdown over the proposed $20 billion deal.