UK begins thorough inquiry into Adobe’s $20 billion acquisition of Figma
Adobe’s $20 billion acquisition of Figma is now under increased scrutiny as the UK’s Competition and Markets Authority (CMA) has initiated a thorough investigation into the deal. This comes after Adobe refused to make any concessions to address antitrust concerns. The investigation, known as “phase 2,” will involve a panel of independent experts who will assess whether the merger will result in a decrease in competition within the design software industry. The CMA has until December 27th to conclude its review.
We’ve reached out to Adobe for comment. The company rejected the CMA’s claims when plans for a new investigation were announced in June and remained confident it would complete the purchase. It previously said it was treating Figma as an independent company and had no plans to raise prices.
The CMA’s preliminary inquiry concluded that Figma’s online collaboration platform had significant market share and that competitive “competition” would disappear if Adobe bought the relatively new entrant. This could lead to higher prices and less innovation, the official said at the time. Adobe, for its part, has argued that buying Figma would strengthen both companies’ products. Creative Cloud apps would get some of Figma’s collaboration features, while Figman’s platform would get some of Adobe’s functionality.
Adobe still hopes to complete the Figma merger by the end of the year. However, it is still facing a US investigation, and the European Union will make its decision by August 7. There is no guarantee that the purchase will close on time or at all, in other words. If any of these agencies block the merger or conduct a prolonged review, Adobe will have to rethink its plans.
