CMA probe throws £16bn Adobe and Figma tie-up into doubt
The UK’s competition watchdog has said it may move to block Adobe’s acquisition of design platform Figma unless they can resolve anti-trust concerns.
In a summary of the decision, the Competition and Markets Authority (CMA) said the merger of the two companies gives rise to “a realistic prospect of a substantial lessening of competition”.
Leading global software developer Adobe announced it was acquiring Figma for $20 billion(£15.8bn) in September 2022.
The regulator’s probe specifically found that competition between Figma and Adobe’s screen design software could disappear if the deal is approved, potentially hiking prices for consumers and stifling innovation in the market.
Sorcha O’Carroll, senior mergers director at the CMA, said, “unless Adobe can put forward viable solutions to our concerns in the coming days, we will move to a more in-depth investigation”.
“Products sold by Adobe and Figma are critical for the development of digital services that people and businesses use on a daily basis – be that popular apps and websites selling anything from holidays to streaming the latest movies”, she said.
In response to the initial investigation findings today, Adobe said the deal would “deliver significant value to customers by making product design more accessible and efficient, reimagining creative capabilities on the web and creating new categories of creativity and productivity”.
“We look forward to establishing these facts in the next phase of the process and successfully completing the transaction”, Adobe added.
Also commenting on the matter, a Figma spokesperson said” “We believe Figma and Adobe can deliver far more value for designers, creators and knowledge workers together than either company could deliver on its own”.
“We believe strongly that our proposed combination with Adobe will not result in any reduction of competition in our respective markets, and we look forward to continued conversations with the CMA focused on the benefits a combined Adobe-Figma entity will bring.”
Unicorn startup Figma, founded in 2012, allows teams of designers to collaborate remotely on visual projects.