According to Bloomberg sources, the U.S. Justice Department is now preparing a lawsuit to attempt to block Adobe's $20B purchase of design software firm Figma.
Regulators are concerned that Adobe would be taking a rival off the market, reducing competition.
Figma offers cloud-based collaboration tools for developers to build web applications. Its collaboration design software competes directly with Adobe’s XD product.
- The cash-and-stock deal, announced in September, would be the largest takeover of a private software company to date.
- According to Bloomberg, Adobe and DOJ representatives met this week. Concerned that the deal could slash the options that creatives have for design software, the DOJ may file a lawsuit as early as March.
- Adobe argues that the two companies specialize in different markets. It claims the deal is not anticompetitive because Figma doesn't compete against its Photoshop, Premiere, or other products.
EU and U.K. antitrust regulators are also inspecting the deal. Earlier this month, the European Commission said the deal will require EU approval, even though it falls short of a turnover threshold for review.
