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 © 2025 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

FSC Announces 2025 Board of Directors Election Nominees

The Free Speech Coalition (FSC) has announced the nominees for its 2025 Board of Directors election.

AdultHTML Launches Black Friday Web Design, Development Promo

AdultHTML has launched its annual Black Friday/Cyber Monday promo for web design and development, running through Dec. 5.

Canada Exempts Online Adult Content From 'CanCon' Quotas

The Canadian Radio-television and Telecommunications Commission (CRTC) has updated its broadcasting regulatory policies, exempting streaming adult content from “made in Canada” requirements that apply to other online material.

Creator Law Firm 'OnlyFirm' Launches

Entertainment attorney Alex Lonstein has officially launched OnlyFirm.com for creators.

German Court Puts Pornhub, YouPorn 'Network Ban' on Hold

The Administrative Court of Düsseldorf has temporarily blocked the State Media Authority of North Rhine-Westphalia (LfM) from forcing telecom providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

FSC: NC Law Invalidating Model Contracts Takes Effect December 1

The Free Speech Coalition (FSC) announced today that North Carolina's Prevent Exploitation of Women and Minors Act goes into effect on December 1.The announcement follows:

NYC Adult Businesses Seek SCOTUS Appeal in Zoning Case

Attorneys representing a group of New York City adult businesses are asking the U.S. Supreme Court to hear an appeal of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

MintStars Launches Debit Card for Creators

MintStars has launched its MintStars Creator Card, powered by Payy.

xHamster Settles Texas AV Lawsuit, Pays $120,000

Hammy Media, parent company of xHamster, has settled a lawsuit brought by the state of Texas over alleged noncompliance with the state’s age verification law, agreeing to pay a $120,000 penalty.

Show More