The Competition and Markets Authority (CMA) has said that Adobe’s $20 billion proposed takeover of design firm Figma could harm competition in the sector.
The CMA said that in their provisional findings the deal would eliminate competition between the companies in the digital design sector.
The watchdog said that they will make their final decision on the deal by 25 February 2024.
Margot Daly, chair of the independent group conducting the investigation, said, “The digital design sector is worth nearly £60 billion to the UK – representing 2.7% of the national economy – and employs over 850,000 people in highly skilled work.
“The software this sector uses is pivotal to its success, so the CMA has from the outset been very focused on ensuring this merger doesn’t adversely affect such an important part of the UK economy.
“Adobe and Figma are two of the world-leading providers of software for app and web designers and our investigation so far has found that they are close competitors.
“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.
“Today’s decision is provisional, and we will now consult on our findings and listen to any further views before reaching a final decision.”
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