The UK’s Competition and Markets Authority (CMA) has issued a preliminary finding that Adobe’s proposed $20 billion acquisition of cloud-based design platform Figma could harm innovation in the digital design sector. The CMA’s investigation, which began in July 2022, concluded that the deal would eliminate competition between two leading players in the market, potentially stifling innovation and reducing the development of new competitive products.
UK’s Competition and Markets Authority (CMA) expresses concerns over Adobe’s proposed $20 billion takeover of Figma, citing potential harm to innovation in the digital design sector.
Potential Impact on Digital Designers
The CMA expressed particular concern that the takeover could diminish Figma’s role as a challenger to Adobe’s flagship design software, such as Photoshop and Illustrator. Figma’s cloud-based approach and collaborative features have gained popularity among digital designers, and its potential integration into Adobe’s portfolio could reduce the choice and innovation available to users.
Adobe’s Response and CMA’s Next Steps
Adobe has acknowledged the CMA’s preliminary findings and stated that it is reviewing them closely. The company is open to discussing further remedies with the CMA to address any competition concerns. The CMA has invited interested parties to provide feedback on its preliminary findings, and a final decision on the proposed acquisition is expected in early 2024.
The CMA’s intervention in the Adobe-Figma deal reflects the growing scrutiny of big tech acquisitions by regulators worldwide, concludes NIXSolutions. As tech giants expand their dominance in various markets, concerns about potential anti-competitive practices and stifling of innovation have intensified. The Adobe-Figma case could serve as a precedent for further regulatory scrutiny of tech acquisitions in the future.