Adobe will need approval from EU lawmakers to finalize Figma deal

(Reuters) -Adobe Inc will need to secure EU antitrust approval for its $20 billion bid for cloud-based designer platform Figma, even if the deal falls short of EU turnover thresholds for review, according to the EU regulators said on Wednesday.

The European Commission’s move underscores regulators’ concerns about Big Tech acquiring smaller innovative rivals and the effect on competition.

The EU competition regulator said Austria, Belgium, Bulgaria, Cyprus, Czechia, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway and Sweden had asked to review the deal.

Adobe, the maker of Photoshop, originally sought approval from antitrust agencies in Austria and Germany for the deal. Austria subsequently referred the matter to the Commission, prompting other EU countries to join in.

The Commission said, “The transaction threatens to significantly affect competition in the market for interactive product design and whiteboarding software, at least EEA (European Economic Area)-wide, and, therefore, in the countries in question.” I’m in.”

“The Commission will now ask Adobe to notify the transaction. Adobe cannot implement the transaction without notifying and obtaining approval from the Commission,” it said.

The deal will give Adobe ownership of a company whose web-based collaborative platform for design and brainstorming is widely popular among tech firms including Zoom Video Communications, Airbnb Inc and Coinbase.

“We look forward to working constructively with the European Commission to address its questions and complete the review in a timely manner,” said a spokeswoman for San Francisco, California-based Figma.

Adobe did not immediately respond to a Reuters request for comment.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)