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UK competition watchdog flags Adobe’s proposed acquisition of Figma

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The UK’s Competition and Markets Authority (CMA), led by Margot Daly, has provisionally identified potential risks associated with Adobe (NASDAQ:ADBE)’s proposed $20 billion acquisition of Figma, a move that could have significant implications for the UK’s sizable digital design industry. The CMA’s concerns, focus on the possibility that the merger could stifle competition within the £60 billion sector that employs over 850,000 individuals.

The CMA is particularly worried about the impact on innovation and consumer choice in the market for product design software, where tools for web and app design are critical for digital designers. The merger could lead to Adobe’s products, such as Adobe XD, overshadowing Figma’s offerings, which would potentially limit the tools available to designers and reduce the incentive for continued innovation.

To address these concerns and ensure a comprehensive review, the CMA has opened the door for public input. Stakeholders are invited to provide feedback on the findings until December 19. This feedback will play a crucial role in the CMA’s final decision-making process, which is expected to conclude by February 25.

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