Adobe’s $20 Billion Acquisition of Figma Faces Scrutiny from EU and US Regulators
Adobe’s $20 billion deal to acquire design startup Figma is coming under increased scrutiny as the European Union joins US regulators in a lengthy review of the proposed takeover. Adobe Inc. Chief Executive Officer, Shantanu Narayen, called the deal “transformational” and has recently pledged his unwillingness to offer remedies to quell antitrust concerns.
UK merger authorities ordered an investigation in June of the acquisition, and US regulators are expected to follow suit, testing the strength of Adobe’s case to complete the takeover. Experts believe the deal could lead to an increase of already high subscription fees, with antitrust lawyers labeling the proposal a “major hurdle.”
Narayen said he is “confident” the deal will pass the competition regualtory bodies, expressing his perception that the two companies are not “directly competing. “The combination of Adobe and Figma will unlock new possibilities for the design community,” he said. “We believe that together we will enable individual creatives, small businesses and enterprises alike, to do more with the power of creativity.”
Whether Adobe will be able to pass regulatory scrutiny and push through with its transformational dream for the design industry remains to be seen.