DOJ Expected to Block Adobe's $20 Billion Figma Acquisition
The US Department of Justice (DOJ) is expected to file an antitrust lawsuit in a bid to block Adobe's acquisition of collaborative design platform Figma.
According to Bloomberg(Opens in a new window), people familiar with the matter believe the lawsuit will be filed at some point in March, and may include the option of an extended regulatory review period. Although yet to be confirmed officially by the DOJ, Adobe apparently had a meeting with representatives of the department on Wednesday.
The news will surely come as a blow for Adobe, but it could just be the beginning. Both the European Union and UK competition regulators are also reviewing the acquisition and may decide to take similar action. According to an Adobe spokesperson, the company is engaged in "constructive and cooperative discussions with regulators in the US, UK and EU among others."
If this all sounds familiar, it's probably because Microsoft is going through the same process and legal action over its decision to spend $68.7 billion acquiring Activision Blizzard.
Adobe announced its intention to acquire Figma for $20 billion back in September last year. Figma is a web application primarily used for designing user interfaces and user experiences, but also offers a digital whiteboard with access to sticky notes, emojis, and drawing tools. Adobe promised at the time that it would not ditch Figma's free plan or ruin its simplicity, and now it seems the company may not even get the opportunity to deliver on that promise.
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