Adobes Figma acquisition could harm innovation, UK regulator
Summary
The regulators extensive phase 2 investigation revealed that the deal might squash competition, reduce innovation, and remove Figma as a threat to Adobes flagship products, Photoshop and Illustrator. Adobe announced its proposal to acquire Figma for $20 billion in September last year, with CEO Shantanu Narayen stating that the partnership would be "transformational". Possible remedies under consideration by the CMA include prohibiting the merger entirely or the divestiture of "overlapping operations" in markets where the deal could substantially reduce competition. This regulatory setback isnt exclusive to the UK, as the European Union also issued Adobe a formal antitrust complaint earlier this month, raising similar competition concerns. In addition, the US Department of Justice was reported to be preparing to sue Adobe to block the deal, indicating a broader international scrutiny of the acquisition.
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