CMA Determines Adobe's Acquisition of Figma May Negatively Impact Competition

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The scrutiny over the potential acquisition of Figma by Adobe has entered a decisive phase as the UK's Competition and Markets Authority (CMA) wrapped up its initial probe. A End of story is anticipated in early 2024.

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The CMA's findings indicate that the planned merger could pose a threat to the integrity of the digital design market—a market pivotal to the UK’s economy, with a valuation nearing £60 billion. Concerns were raised about possible adverse effects on competition levels within the industry.

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Margot Daly, who led the investigative team, emphasized the considerable impact this deal could have due to Adobe and Figma's status as leading software providers in the app and web design space. "This proposed deal, therefore, has the potential to impact the UK's digital design industry by reducing choice, innovation and the development of new competitive products," Daly remarked.

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Concerns Around Innovation and Competition

An important aspect of the CMA's concerns is the potential stifling of competition and the subsequent reduction in incentives for innovation. This could potentially disadvantage companies dependent on these digital design tools. Initially, Adobe had five working days to respond to the CMA's anticompetitive concerns before the authority decided to launch a formal investigation in July.

Announced initially in September 2022, Adobe's ambitious notion of a $20 billion acquisition of Figma has come under international regulatory scrutiny. Despite Adobe's initial expectation of concluding the deal by 2023, it faces objections globally over antitrust concerns, with similar investigations being undertaken by the European Union and in the United States.

As we observe the unfolding events of this significant acquisition case, the industry awaits the final verdict which could reshape the future of digital design tools.

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