Adobe's Figma deal could see in-depth EU antitrust review - report
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Adobe's (NASDAQ:ADBE) planned $20 billion purchase of design software giant Figma is expected to face an in-depth review by European antitrust regulators, the Financial Times reported.
Shares of Adobe (ADBE) dipped 1.3% in premarket trade on Tuesday. 
While many large acquisitions undergo a "phase 1" investigation, which usually takes a few months, Adobe's (ADBE) Figma deal could face a more detailed "phase 2" probe, the FT reported citing unnamed sources. 
The tougher review is because of concerns that the deal will lead to less innovation and higher prices.
"We are still in preliminary phases of the regulatory process and are having constructive discussions with the CMA, EC and DOJ about the businesses, markets and positive economic impacts this deal will bring to support their reviews," an Adobe spokesperson told Seeking Alpha. "We remain confident in the merits of the case and look forward to successfully completing the transaction."
The development comes over a month after the U.K.'s antitrust authority said it was probing the $20B deal. The U.S. Department of Justice is also reportedly planning to file an antitrust lawsuit to block the deal.
Earlier this year, the European Commission said it would "assess" the proposed deal, which it said did not reach the revenue thresholds set by the EU Merger Regulation and therefore was not notified to the Commission.
Adobe (ADBE) is yet to formally notify the Commission about the deal, the FT report added.
The proposed acquisition was not welcomed by Wall Street, as the purchase price was double the valuation of Figma in its private funding round in 2021.
"The ability to reaccelerate (revenue) growth remains a debate, given uncertainty on closing Figma, although AI opportunities are moving into focus," said Morgan Stanley last week after Adobe (ADBE) reported earnings.
More on Adobe-Figma deal:

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EU to 'assess' Adobe's $20B deal to buy Figma
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Adobe: Figma Acquisition Is Expensive But Worth It