The Competition and Markets Authority stated that Adobe's planned takeover of Figma could detrimentally impact the UK's digital design industry. Although the results of their investigation are non-final, the regulator declared that they will explore potential solutions and could preclude the acquisition in its entirety.
The U.K.'s Competition and Markets Authority has concluded that Adobe's proposed $20 billion acquisition of Figma could harm the country's digital design sector, potentially presenting a major roadblock to the merger. The regulator said Tuesday that the deal could lead to the elimination of competition, decreased innovation, and the removal of Figma as a competitor to Adobe's Photoshop and Illustrator products.
A spokesperson for Figma told CNBC that they "strongly disagree" with the CMA's findings and emphasized that the company has not made any efforts to compete with Adobe. Adobe also expressed disappointment, claiming the deal would generate significant value for customers. David Wadhwani, a key executive behind the Figma deal, had previously expressed frustration about the slow regulatory process.
The CMA has requested responses from Adobe and Figma by Dec. 19 and said it will make a final decision by Feb. 25 of next year. Adobe has previously stated that it expects to close the deal this year and has agreed to pay Figma $1 billion in the event that the merger is not concluded by March 2024 or is rejected by regulators.
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