The European Union launches a major investigation into Adobe's intention to buy the product design platform Figma. It warns that the proposed deal could lead to a restriction of competition in the field of software for the creation of interactive products and digital assets. The Commission now has until 14 December to decide on its next course of action.

Last month, the UK regulator CMA also announced its findings that the deal could lead to fewer options for creators of digital apps, websites and other products. In order to investigate the matter further, a 'Phase 2' investigation has been launched involving a panel of independent experts who will assess whether the merger will actually reduce competition in the software design sector. The CMA has set a deadline of 27 December to complete its review.

The software giant, with a market capitalization of $237 billion, made a $20 billion takeover bid for Figma in September. Figma provides a browser-based application that efficiently organizes files by presenting projects and related files in a specified format. This vector graphics editor and prototyping tool does not require installation, patching or updates, offering convenience to users. Founded in 2016, Figma has managed to raise up to $333 million in funding. It has an estimated 4 million users, and offers a free version that allows users to collaborate and share files without additional licensing fees.

With the increasing size and complexity of mergers and acquisitions, it is no surprise that regulators around the world are increasing their attention. Given concerns about potential monopolies, restrictions on competition and their impact on consumers, the aim of increased scrutiny by regulators is to ensure fair play and protect market dynamics.