Last Updated: February 16, 2023, 15:29 IST
Adobe has been trying to shut the deal
Adobe Inc might want to safe European Union antitrust approval for its $20 billion bid for cloudbased designer platform Figma although the deal falls in need of the EU turnover threshold for a evaluation, EU regulators mentioned on Wednesday.
(Reuters) -Adobe Inc might want to safe European Union antitrust approval for its $20 billion bid for cloud-based designer platform Figma although the deal falls in need of the EU turnover threshold for a evaluation, EU regulators mentioned on Wednesday.
The transfer by the European Commission underlines regulators’ worries on Big Tech buying smaller modern rivals and the affect on competitors.
The EU competitors enforcer mentioned Austria, Belgium, Bulgaria, Cyprus, Czechia, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, and Sweden had requested it to evaluation the deal.
Photoshop maker Adobe had initially sought approval from antitrust companies in Austria and Germany for the deal. Austria subsequently referred the case to the Commission, prompting the opposite EU international locations to hitch in.
“The transaction threatens to significantly affect competition in the market for interactive product design and whiteboarding software, which is likely at least EEA (European Economic Area)-wide, and, therefore, in the referring countries,” the Commission mentioned.
“The Commission will now ask Adobe to notify the transaction. Adobe cannot implement the transaction before notifying and obtaining clearance from the Commission,” it mentioned.
The deal will give Adobe possession of an organization whose web-based collaborative platform for designs and brainstorming is broadly standard amongst tech companies together with Zoom Video Communications, Airbnb Inc and Coinbase.
“We look forward to working constructively with the European Commission to address its questions and bring the review to a timely close,” a spokesperson for San Francisco, California-based Figma mentioned.
Adobe didn’t instantly reply to a Reuters request for remark.
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