Adobe to Propose Remedies to Resolve Regulatory Concerns

An exclusive update revealed that Adobe, the renowned creator of Photoshop, is proposing remedies to resolve regulatory concerns with the European Union (EU).

This move concerns its proposed acquisition of Figma, a cloud-based designer platform. According to the report, Dana Rao, the chief counsel at Adobe, shared insights on the matter in an interview.

Concerns Surrounding Adobe Figma Bid

The company currently faces two major concerns: the antitrust warning from the EU’s antitrust regulator. In addition, Rao confirmed that Adobe could only propose remedies when it receives a statement of objections from the European Commission to understand the antitrust concerns.

These difficulties come amid the backdrop of growing regulatory scrutiny globally. This is particularly true for Big Tech companies’ acquisitions that could alter market competition and dynamics. It also involves new players in the industry, which are potential competitors.

Rao reiterated Adobe’s commitment to facilitating a smooth approval process, stating that they are willing to engage in discussions and propose remedies. He also noted that the company will do whatever it takes to pull off the deal.

Notably, the willingness to engage in remedy discussions underscores Adobe’s proactive approach to address any regulatory concerns that may arise during the scrutiny of the $20 billion deal.

As Rao emphasized, the specifics of potential remedies would hinge on the details provided in the European Commission’s forthcoming document. This document will elaborate on concerns raised during the EU competition enforcer’s comprehensive investigation in August.

Despite the uncertainty surrounding the objections, Rao clarified that Adobe does not view itself as a significant competitor to Figma. He pointed out that the primary product regarding the deal is Adobe XD, a tool designed for mobile and web apps.

Rao emphasized that the Adobe XD app has lost $25 million in the past three years as a standalone app, with only five full-time employees supporting it. The ongoing case illustrates Adobe’s stance in navigating the regulatory landscape. 

Adobe’s Operational Challenges

Aside from these challenges, Adobe has also faced several hurdles in 2023. This is particularly true for its software offerings like Photoshop and Illustrator. Users expressed frustration due to many issues, including bugs and sluggish performance in Photoshop 2023.

Besides that, Adobe discontinued support for Type 1 fonts in January 2023. Following the decision, the company saw the utilization of its design applications across the Adobe Creative Cloud plunge significantly.

Also, diverse challenges obstructed the release of Illustrator 2023.

These challenges range from window shrinking to stability issues and various technical glitches. But despite grappling with these obstacles, Adobe has taken steps to introduce AI features and is in the process of implementing price increases and payouts.

These strategic moves aim to improve software quality and compensate contributors for their efforts. These occurrences typically highlight the company’s technical challenges and strategic endeavors throughout 2023.

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