Adobe could face lawsuit over $20 billion Figma deal
Acquisition of Adobe for $20 billion Figma may soon face another lockdown, with whispers of a legal challenge from the United States Department of Justice (DoJ).
They informed people close to the proceedings Bloomberg news (opens in a new tab) The DoJ is preparing an antitrust lawsuit for the coming months. On the condition of anonymity, the second mole admitted that DOJ and Adobe were in talks.
In Europe, EU regulators and the UK Competition and Markets Authority are also keeping a close eye on the details of the merger, which is due to close this year. Adobe continues “constructive and collaborative discussions with US, UK and EU regulators, among others,” the spokesperson said.
Adobe and Antitrust
Adobe has announced that it intends to buy popular website builder tool in september to somehwata mixed answer.
Some on Wall Street were concerned about the $20 billion bill, while the creators feared that the Adobe acquisition could see mockup software gutted as its best parts end up in other Adobe products. .
For Adobe, the acquisition is in line with recent attempts at streamlining and simplifying graphic design software for a wider audience, including a heavy emphasis on the Internet Adobe Express. By acquiring a UI design company, the company adds another string to its nod – and another revenue stream.
A DoJ antitrust lawsuit would block the deal – at least until it is determined whether the controversial merger gives Adobe an unfair advantage.
Antitrust laws are designed to stop one company (or a cartel of companies) from dominating an industry, acting unfairly, and restricting competition. In fact, the bigger the company, the more companies it can buy, the less competition there is. For consumers, this means the risk of less choice and higher prices.
With a company already dominating in areas such as web design software AND photo editorsThe DoJ wants to prevent Adobe from monopolizing the creative app space.
This isn’t the first antitrust lawsuit Adobe has faced – but the challenge seems to be on par with the course for the recently revived DoJ, which is also doggedly pursuing Google over its alleged monopoly on digital ad technology.