Home > Latest News > Adobe’s Figma Merger Faces U.K. Competition Concerns

Adobe’s Figma Merger Faces U.K. Competition Concerns

According to the U.K. Competition and Markets Authority (CMA), Adobe’s potential Figma acquisition of $30 billion would likely harm innovation for software used by most U.K. digital designers.

This is Phase 2 of the CMA investigation who said these are provisional findings regarding Figma, the collaboration-software company, and Adobe, which uncovered that not only would the market remove the competition between these two key players in the industry but that it would diminish innovation and the design of new competitive products.

Both Adobe and Figma disagree with the findings and say they are still committed to the merger.

“We are disappointed in the CMA’s findings and disagree with the CMA’s perspective on this transaction,” an Adobe spokesperson commented.

“Adobe and Figma will deliver significant value to customers. We are reviewing the provisional findings and will reengage with the CMA on the facts and merits of the case.”

CMA’s assertion at the centre of the case is that the merger would eliminate Figma as competition to Adobe’s primary money-makers Photoshop and Illustrator products and would mainly disrupt three software segments: image editing, product design, and illustration.
Most industry workers use the key design players, with the overall market worth being an estimated 60 billion pounds ($114 billion), or approximately 2.7% of the U.K.’s economy.

“Adobe and Figma are two of the world’s 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 U.K.’s digital design industry by reducing choice, innovation and the development of new competitive products,” said Margot Daly, chair of the independent group that conducted the investigation.

Further review and investigation will be needed before CMA said they will make a judgement on the merger and the regulator has requested replies from both parties by December 19.



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