Adobe Inc’s $20 billion bid to acquire cloud-based designer platform Figma has hit a snag in the form of EU antitrust approval. Even though the deal falls short of the EU turnover threshold for a review, European Union regulators have taken note of the move and have asked Austria, Belgium, Bulgaria, Cyprus, Czechia, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, and Sweden to review the deal.
The EU competition enforcer is cognizant of the impact of Big Tech acquiring smaller innovative rivals and has thus acted to ensure that the competition in the market remains healthy.
Adobe’s move has resulted in the software industry gearing up for consolidation. Companies are vying for the acquisition of smaller firms in a bid to expand their market share and gain a larger footing in the industry. The move also indicates the changing trends in the software industry as companies shift from traditional software to cloud-based solutions.
Figma is a major player in the cloud-based design sector, and its acquisition by Adobe could potentially create a monopoly in the industry. For this reason, the EU has decided to step in and review the deal.
The acquisition is also likely to have a negative impact on smaller designers and developers who depend on Figma as a platform to showcase their skills and gain exposure. It will be interesting to see how the EU deals with this issue and other antitrust issues posed by the move.