Is Adobes planned acquisition of Figma anti-competitive?
Summary
On May 3, 2023, an inquiry was launched by the UK’s Competition and Markets Authority (CMA) into the anticipated $20bn acquisition by ADOBE of design software company, Figma. Meanwhile, the US Department of Justice is preparing an antitrust lawsuit to block the acquisition, having voiced concerns that the deal would reduce consumer options for design software. In late April 2023, Microsoft also encountered a roadblock to its cloud gaming growth efforts, as the CMA vetoed its planned acquisition of Activision Blizzard. The Bill will further empower the CMA “to address the root causes of competition issues”, giving the regulator powers to fine companies up to 10% of global turnover for breaching consumer law. For now, Adobe remains optimistic that the Figma deal will close in 2023, as investors and professional creatives wait with bated breath and the company’s stock price plateaus.
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