Adobe’s $20bn deal to acquire rival Figma is set to face a lengthy antitrust investigation in the EU, in the latest move that threatens the software giant’s attempt to consolidate the digital design market.
According to four people with direct knowledge of the move, European antitrust regulators are preparing to launch a formal investigation into the acquisition later this year, over concerns the transaction will lead to less innovation and higher prices.
Many large acquisitions receive an interrogation, known in EU circles as a “phase 1” investigation, which typically takes a few months to complete. But those close to the situation suggest that EU authorities plan to push forward with a more detailed “phase 2” investigation, which could take many more months and may ultimately derail the deal altogether.