U.S. DOJ to probe Adobe and Figma’s deal

The U.S. Department of Justice (DOJ) is preparing to open an investigation into Adobe Inc’s $20 billion takeover of Figma. The DOJ has been reaching out to customers and competitors of Adobe and Figma, as well as Figma’s venture capital investors in recent weeks.

Adobe’s $20 billion bid for Figma has concerned investors about the rich price tag the company was paying for the cloud-based design platform that is widely popular among tech firms including Zoom Video Communications and Airbnb Inc.

It is reportedly said that the DOJ has already issued civil investigative demands — information requests similar to subpoenas — an unusual move at this early juncture in the probe. The DOJ is also expected to probe Adobe’s past acquisitions.

Other well-known Adobe acquisitions include the 1994 purchase of Aldus, which it used to develop its widely used InDesign software, its 2005 purchase of Macromedia, developer of the now defunct design software Flash, and a 2018 deal for marketing software company Marketo.

Adobe said, “Adobe and Figma today are not meaningful competitors. We are engaged in productive discussions with regulators to ensure they have a full understanding of the combination and expect to close the transaction in 2023.” The company further said that it does not plan to raise prices and will continue offering a so-called freemium version of Figma.