UK says Adobes $20B deal for Figma would hurt graphic design market
Summary
The UK competition authority has objected to Adobes proposed $20 billion acquisition of cloud-based design company Figma, on grounds that it might stifle innovation. According to the results of an investigation by the Competition and Markets Authority (CMA), Adobes refusal to provide concessions to alleviate worries about the deal has led to findings that the acquisition would eliminate competition and remove Figma as a threat to Adobes main products, Photoshop and Illustrator. “Adobe and Figma are two of the world leading providers of software for app and web designers, and our investigation so far has found that they are close competitors,” Margot Daly, chair of the independent group conducting the UK investigation, said in a news release on Tuesday The CMA is considering ways to address its concerns about the merger. Possible remedies include stopping the merger completely or requiring Adobe to sell off parts of its business that overlap with Figmas, especially in areas where the deal might reduce competition. The EU recently sent Adobe a formal complaint regarding competition concerns, and there were reports that the US Department of Justice might sue to stop the deal.
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