Adobe’s $20 billion offer for cloud-based designer platform Figma will be the subject of a thorough EU antitrust inquiry following a preliminary evaluation by EU regulators.
The action highlights antitrust watchdogs’ caution when it comes to IT agreements where larger businesses could buy rival start-ups in order to put them out of business.
According to Reuters, an Adobe spokesperson declined to comment on the EU review.
“We continue to have productive conversations with regulatory bodies worldwide. We are excited about the value Adobe and Figma will bring to customers by making product design more accessible and efficient.” the spokesperson said
The acquisition could harm competition in the market for interactive product design and whiteboarding software, the European Commission said earlier this year. By August 7, the EU competition enforcer is expected to have completed its initial review.
The Web-based design and brainstorming platform from Figma is used by digital companies like Airbnb, Coinbase, and Zoom Video Communications.
