EUROPEAN COMMISSION - CMA - INVESTIGATION INTO THE ACQUISITION OF FIGMA BY ADOBE

21/08/2023

The European Commission and the UK Competition and Markets Authority (CMA) launched an investigation into the acquisition of Figma, Inc. by Adobe Inc. 

The European Commission stated that the investigation was initiated on suspicion that the transaction may lessen competition in the global markets for interactive product design software and digital asset creation tools. As a result of its preliminary investigation, the Commission found that the transaction may restrict competition in Adobe's global markets. In addition, the Commission detected that;

• Figma is by far the market leader in the market for the supply of interactive product design tools and is one of Adobe's biggest competitors.
• Adobe and Figma are close competitors and the transaction could remove an important competitive edge.
• Other players are unlikely to enter the market in a timely and reliable manner,
• That the transaction could eliminate Fgma's current restrictive influence in Adobe's market for digital asset creation tools.
• If the transaction does not materialize, Figma's potential to become an effective competitor to Adobe's asset creation tools could be hindered.

The Commission also announced that it would examine in more detail whether the transaction excluded competing providers of interactive product design tools. 

The CMA, on the other hand, completed the first phase and decided to proceed to the second phase and initiate an investigation based on concerns that the merger could lead to a substantial lessening of competition in the UK market. In the first phase, the CMA found that;

• The parties are competitors in the supply of all-in-one screen design software and the merger would eliminate this competition; and
• The parties are competitors in the supply of creative design software and the merger would eliminate this competition.

The CMA notified the parties of its competitive concerns. Finally, it stated that if these concerns are not addressed by the parties through commitments, the investigation will continue in the second phase.

(European Commission - CMA – 07.08.2023 - 03.05.2023)

 

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