In a closed hearing scheduled for December 8, software giant Adobe is set to defend its proposed $20 billion acquisition of design software firm Figma against antitrust charges brought by the European Union. The impending decision carries significant implications for the global market of interactive product design software, and European regulators have expressed concerns over potential consequences for competition and consumers.
The European Union has been rigorously investigating Adobe’s attempt to acquire Figma for several months, scrutinizing the $20 billion deal that could reshape the landscape of design software. A warning from EU authorities suggests that the acquisition may result in a reduction of competition within the interactive product design software market, where Figma has played a pivotal role in providing an alternative to Adobe’s dominant position.
While Adobe holds a market leadership position in design, image, and video software, Figma has carved a niche for itself by offering competition specifically in web and product design. European regulators argue that by absorbing Figma, Adobe could eliminate a key competitor, potentially limiting choices for consumers and raising concerns about monopolistic practices.
The closed hearing on December 8 represents a crucial moment for Adobe, offering the company an opportunity to present its case and address the antitrust concerns raised by the European Union. Adobe aims to persuade regulators that the acquisition is in the best interest of the market and consumers alike. The decision by the EU on whether to approve the deal is expected by February 5, 2023.
In response to the regulatory scrutiny, Adobe has expressed openness to alternative proposals that could alleviate concerns raised by European authorities. This indicates a willingness on Adobe’s part to work collaboratively with regulators to address potential competition issues and ensure a fair and competitive market for interactive product design software.
The outcome of this high-stakes hearing and subsequent decision by the European Union will undoubtedly shape the future of the design software market, influencing competition dynamics and the choices available to designers and businesses across the globe.