Adobe's $20 billion Figma acquisition faces anti-competition charges from EU regulators

Adobe's planned $20 billion acquisition of Figma is reportedly facing potential anti-competition charges from European Union (EU) regulators, according to Financial Times. The charges, expected to be filed this week, stem from EU concerns that the merger could stifle innovation and drive up prices in the digital design market.

EU officials view the merger as a possible "killer acquisition," where a larger company buys a smaller competitor to eliminate competition (Let's remember that Adobe itself put its own alternative to Figma, Adobe XD, on life support shortly after the acquisition was announced). The UK is also investigating the deal's potential impact on market products, improvements, and overall competition. A preliminary UK assessment suggested the deal could significantly lessen competition.

In the US, the Department of Justice is reportedly preparing to block the transaction with a lawsuit, adding to the legal hurdles the deal is facing. Adobe has expressed readiness to address regulatory challenges, indicating a willingness to navigate the increasing scrutiny of large tech transactions.