Adobe's $20B Figma Deal Faces UK Regulatory Hurdle
The U.K. Competition and Markets Authority (CMA) has provisionally concluded that Adobe Inc's (NASDAQ:ADBE) proposed $20 billion acquisition of Figma could harm innovation in software used by U.K. digital designers.
Also Read: EU's Antitrust Warning Looms Over Adobe's $20B Figma Takeover Bid: Report
The CMA's detailed Phase 2 investigation suggests the deal might reduce competition in product-design software, stifle innovation, and eliminate Figma as a competitive threat to Adobe's major products like Photoshop and Illustrator.
Adobe expressed disappointment and disagreement with the CMA's findings, emphasizing the deal's potential value for customers, the Wall Street Journal reports.
Figma also disagreed with the CMA's view, stating it does not compete with Adobe currently or plans to in the future.
The CMA identified concerns in three software markets: product design, image editing, and illustration, noting the significance of these sectors in the U.K.'s economy.
The CMA will consult further and consider responses from interested parties until December 19 before making a final decision.
Recently, U.S. chipmaker Broadcom Inc (NASDAQ:AVGO) and cloud software company VMware, Inc (NASDAQ:VMW) won every regulatory approval required to close the merger deal. Also, recent reports indicated that Amazon.Com Inc's (NASDAQ:AMZN) proposed acquisition of Roomba robot vacuum maker IRobot Corp (NASDAQ:IRBT) will likely get unconditional approval from EU antitrust authorities.
Price Action: ADBE shares traded lower by 0.55% at $615.83 premarket on the last check Tuesday.
