The Department of Justice (DOJ) is reportedly preparing to file a lawsuit against software giant Adobe over its planned $20 billion acquisition of design platform Figma. According to reports, the DOJ is concerned that the deal would give Adobe an unfair advantage in the highly competitive digital design space and that it could stifle competition and innovation.
The news has sent shockwaves through the tech industry, with Adobe’s stock slipping on the back of the report. Analysts believe that if the DOJ proceeds with the lawsuit, it could delay or even scupper the deal entirely, potentially jeopardizing Adobe’s growth prospects.
This is the latest in a series of antitrust actions taken by the Biden administration against big tech companies as it seeks to rein in the power of dominant players in the industry. Earlier this month, the DOJ filed a lawsuit against Google over its planned $2.1 billion acquisition of fitness tracking company Fitbit, citing concerns over data privacy and competition.
Adobe is a California-based software company that provides a wide range of digital design and marketing solutions to businesses and individuals around the world. Its products include popular software such as Photoshop, Illustrator, and InDesign. Figma, meanwhile, is a collaborative design platform that allows teams to work together on projects in real-time.
The potential lawsuit comes as the tech industry faces increased scrutiny from regulators around the world, with concerns growing over the impact that these companies are having on society, from data privacy and security to competition and innovation. The DOJ’s actions against Adobe and Google are seen as part of a wider effort to hold these companies accountable for their actions and ensure that they are not abusing their power.
Adobe has not yet responded to the reports, and it remains to be seen what its next move will be. However, the DOJ’s actions are likely to be closely watched by other tech companies, which will be keen to avoid similar regulatory scrutiny in the future.