Adobe's Figma Deal Faces Hinderance, EU Postpones Review For By Another 10 Days

Adobe Inc's ADBE Figma takeover deal faced a bummer as the European Commission decided to extend the deadline for its review of the possible merger.

The EU postponed the deadline to January 8, 2024, by ten working days.

Also Read: Adobe Faces Regulatory Challenges for AI Expansion with Figma Acquisition: Analyst

The Commission launched an in-depth investigation to analyze whether the transaction reduced competition in the global markets for the supply of interactive product design software and digital asset creation tools.

The U.K. launched an initial probe into the deal in May while the U.S. Department of Justice prepares a lawsuit to block the $20 billion deal. 

Figma is a maker of cloud-based design tools offering better performance than Adobe's software, including the image editing system Photoshop.

The Competition and Markets Authority (CMA), the U.K.'s watchdog, launched a probe in July.

Several such takeover deals are facing regulatory probes. Microsoft Corp's MSFT Activision Blizzard, Inc  ATVI deal met inquiries from the Competition and Markets Authority, while the software-maker forged exclusive deals with Nvidia Corp NVDA and Sony Group Corp SONY to win the contract.

Price Action: ADBE shares traded lower by 0.95% at $515.67 on the last check Wednesday.