Sources say Adobe's acquisition of Figma for $20 billion will face an EU investigation

CTOnews.com, June 20 (Xinhua)-- Adobe's acquisition of rival Figma for $20 billion (CTOnews.com Note: about RMB 143.2 billion) will face a lengthy antitrust investigation in the European Union, according to the Financial Times.

European antitrust regulators are preparing to launch a formal investigation into the acquisition later this year because of concerns that the deal will lead to fewer innovations and higher prices, according to four people with direct knowledge of the deal.

Many large acquisitions are "interrogated", known as the "first phase" of investigations in EU circles, and usually take months to complete. But sources said EU authorities planned to press ahead with a more detailed "second phase" investigation, which could take more time and could eventually sabotage the deal.

EU regulators had earlier said that Adobe's acquisition of Figma required antitrust approval, although the deal did not meet the turnover threshold reviewed by the EU.

Adobe said it was in the early stages of a regulatory process and had constructive discussions with regulators in the UK, EU and US about the deal. Figma, the design collaboration platform, said it looked forward to continuing the dialogue with regulators.

This is the largest acquisition in Adobe's history, and the price is twice the valuation of Figma's last round of fund-raising and 10 times its 2019 valuation. Based on Figma's reported revenue of more than $400 million in 2022, Adobe values it at 50 times Figma's annual recurrent income (ARR).