© Reuters. FILE PHOTO: Adobe logo is seen on smartphone in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – The U.S. Department of Justice is preparing to open an investigation into Adobe (NASDAQ:) Inc’s $20 billion takeover of Figma, Politico reported on Wednesday, citing four people with knowledge of the matter and a document it viewed.
The DOJ has been reaching out to customers and competitors of Adobe and Figma, as well as Figma’s venture capital investors, in recent weeks, according to the report.
“Adobe and Figma today are not meaningful competitors,” Adobe said in an emailed statement.
“We are engaged in productive discussions with regulators to ensure they have a full understanding of the combination and expect to close the transaction in 2023,” the company added.
Figma and the DOJ did not immediately respond to Reuters’ requests for comment.
Adobe’s $20 billion bid for Figma had sparked investor concerns about the rich price tag the company was paying for the cloud-based design platform that is widely popular among tech firms including Zoom Video Communications (NASDAQ:) and Airbnb Inc.
The exact timing of the probe is unclear, Politico said, adding that the companies are still in the review period mandated by law.