UK launches intense probe into Adobe’s $20bn Figma bid

Adobe’s $20 billion bid for cloud-based design platform Figma will now be under intense scrutiny by the UK’s competition watchdog, which will decide whether to approve the merger or block the deal altogether.

Competition and Markets Authority (CMA) announced While on Thursday it referred the acquisition to a “phase two” probe – a longer, more thorough assessment carried out by an independent CMA panel – Adobe and Figma informed the regulator that they are working on solutions to address concerns arising from the merger. will not provide The reason being the “significant lack of competition” for designers in the UK.

Following its preliminary “Phase One” investigation last month, the CMA concluded that the acquisition would remove a “significant competitive threat to Adobe”, which was perceived to be between Figma and Adobe’s own all-in-one product design software, Adobe XD. Similarities are given. The watchdog gave the companies a deadline of 7 July – just five working days from the announcement – ​​to present an “acceptable undertaking”, allowing the merger to proceed without further scrutiny. The CMA has now set itself a statutory deadline of December 27 to conclude the second phase of its probe.

Adobe’s General Counsel and Chief Trust Officer Dana Rao provided the following statement. ledge In response to the CMA’s decision:

We are convinced of the merits of the case because Figma’s product design is adjacent to Adobe’s core creative products and Adobe has no meaningful plans to compete in the product design area. We look forward to establishing these facts at the next stage of the process and successfully completing the transaction. As demonstrated by our recent strong second quarter earnings, Adobe continues to execute against a massive market opportunity of more than $200B and deliver unprecedented innovation and industry-leading AI capabilities across our products.

Adobe’s $20 billion Figma bid is also being evaluated by regulators We And this European Union, The European Commission has set a provisional deadline 7 august to decide whether to approve the deal or launch its own in-depth investigation that risks blocking the merger.