Antitrust Experts Eye Adobe Purchase of Macromedia

PALO ALTO, Calif. — Federal regulators are holding up Adobe’s proposed acquisition of Macromedia by requesting additional information and market studies to determine if the companies’ merger violates the Sherman Antitrust Act.

The planned purchase, announced in April and valued at $3.4 billion, would bring under one roof — cumulatively called Adobe — the immensely popular graphics, portable document format (PDF) and web-design capabilities of the two Northern California companies.

It also raises speculation about unfair market domination, despite what both Adobe and Macromedia call a “routine” second request for information from the Department of Justice.

Adobe chose to bid on Macromedia because many of the two companies’ products overlap in scope, and because they were both facing increased competition from open source providers. In addition, Microsoft recently unleashed a beta version of its own Adobe Illustrator-like vector graphics program, code-named Acrylic.

"It's not unusual to see a second [DOJ] request in cases where the parties serve the same market, especially in software," said Connie Robinson, an antitrust lawyer at Kilpatrick Stockton.

"Unlike a widget, where you can see it and touch it, software is harder to get your hands around and understand," she said.

Spokespeople for Adobe have speculated that any possible legal challenge will not keep the company from finalizing the purchase of Macromedia some time in the fall.

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Child Protection, Civil Liberties Groups File Amicus Briefs in Support of FSC Court Petition

Several child protection and civil liberties groups have filed amicus briefs in support of the Free Speech Coalition's (FSC) petition to the Supreme Court.

Woodhull Urges the Supreme Court to Find Texas AV Law Unconstitutional

The Woodhull Freedom Foundation and the Electronic Frontier Foundation submitted a brief to the United States Supreme Court on Thursday, urging the justices to rule against Texas’ age verification law.

AEBN Publishes Popular Searches for March and April

AEBN has released the top search terms for the months of  March and April from its straight and gay theaters in all 50 states and the District of Columbia.

2024 XBIZ Creator Awards Winners Announced

Winners of the 2024 XBIZ Creator Awards were revealed Wednesday evening during a live ceremony at E11EVEN Nightclub in Miami, Florida. The event, presented by Fansly, was hosted by Siri Dahl and Little Puck.

'90s Japanese Performer Sues to Remove Titles from Streaming Site

Former Japanese performer Miyuki Ariga is suing the Fanza adult streaming site at the Tokyo District Court to remove four titles in which she appeared in 1994.

Free Speech Coalition Asks Court to Block Montana AV Law

The Free Speech Coalition (FSC) has asked the US District Court of Montana to block the state's new age verification law.

Segpay Launches Virtual 'Segcard' Creator Payout Solution

Segpay has updated its Segcard creator payout option by offering a new, virtual version.

Leading Conservative Think Tank Slams 5th Circuit for Upholding Texas Age Verification Law

Leading conservative think tank the American Enterprise Institute has published an opinion piece penned by one of its senior fellows criticizing the 5th Circuit endorsement of Texas’ controversial age verification law.

OpenAI Shuts Down AI-Generated Porn Rumors

A spokesperson for OpenAI, the company behind ChatGPT, has shut down online chatter about how a rumored relaxation of the company’s stance against AI-generated NSFW content may result in a lifting of its porn ban.

9th Circuit Upholds Verdict Against Oregon College for Discriminating Against Former Adult Performer

The 9th U.S. Circuit Court of Appeals on Monday upheld a 2022 Oregon jury’s verdict in favor of Nicole Gililland, a former nursing student who sued her school for discriminating against her because of her adult performer past.

Show More