Britain’s Competition and Markets Authority (CMA) has initiated an extensive investigation into Adobe’s $20 billion bid to acquire cloud-based designer platform Figma. The regulatory body’s decision comes after Adobe declined to offer any remedies to address concerns raised by the CMA regarding potential limitations on choice for digital app designers.
Last month, the CMA expressed apprehension that the deal could result in reduced options for designers of digital apps, websites, and other products. It specifically highlighted concerns related to the supply of screen design software, an area where Adobe and Figma directly compete.
The CMA had given Adobe a five-day window to propose solutions that would allay its concerns. However, on July 7, the US company informed the CMA that it would not be providing any remedies, according to the announcement made by the regulatory body on Thursday.
Both Figma and Adobe referred Reuters to their previous responses in June, in which they addressed the concerns flagged by the CMA. Adobe’s spokesperson expressed anticipation of clarifying the facts during the upcoming phase of the investigation and successfully completing the transaction.
The CMA’s in-depth inquiry, known as a phase two probe, involves an investigation conducted by an independent group of experts. The CMA has until December 27 to conclude its investigation and reach a final decision.
Figma, a popular web-based collaborative platform for designs and brainstorming, has gained significant traction among tech firms such as Zoom Video Communications, Airbnb, and Coinbase.
Adobe initially announced its cash-and-stock acquisition deal for Figma in September. The company aims to finalize the acquisition by the end of this year, pending regulatory approvals from both the US and EU. European Union antitrust regulators are set to make their decision on whether to clear the acquisition by August 7.
The outcome of the CMA’s investigation and the subsequent regulatory decisions will shape the future of Adobe’s bid to acquire Figma. As the scrutiny continues, industry stakeholders will closely monitor developments to understand the implications for competition in the digital design sector.
