The Competition and Markets Authority (CMA), Britain’s antitrust regulator, has announced a thorough investigation into Adobe’s proposed $20 billion acquisition of Figma, a cloud-based designer platform. This comes after Adobe stated that it would not offer any remedies to address the concerns raised by the regulator.
Last month, the CMA expressed worries that the deal could result in reduced choice for designers of digital apps, websites, and other products. The regulator specifically identified concerns regarding the supply of screen design software, an area where Adobe and Figma compete. The CMA had given Adobe a deadline of five working days to propose solutions to alleviate these concerns. However, on July 7, Adobe informed the CMA that it would not be providing any remedies.
In response to the announcement, both Figma and Adobe referred to their previous statements issued in June when the CMA initially highlighted these concerns. Adobe’s spokesperson expressed optimism about successfully completing the transaction after the investigation process.
The in-depth investigation, known as phase two, will be conducted by an independent group of experts chosen by the CMA. The regulator has until December 27 to conclude its investigation.
Figma’s web-based collaborative platform for designs and brainstorming is widely popular among tech companies such as Zoom Video Communications, Airbnb, and Coinbase.
Adobe’s cash-and-stock deal for Figma was announced in September, with a target to close the acquisition by the end of this year. The acquisition is also under scrutiny by U.S. and EU regulators, with the EU antitrust regulators expected to make a decision on whether to approve the acquisition by August 7.
