Adobe’s proposed merger with Figma has come under scrutiny from the UK’s Competition and Markets Authority (CMA). The independent body is examining the “anticipated acquisition” to ascertain whether it would lead to a reduction of competition in the United Kingdom.
Adobe’s recent interest in web development platform, Figma, which has a collective of developers and users, was met with a range of reactions from users. Whilst shareholders of Adobe had strong reactions to market, as a whole, cautiousness was more prevalent among stakeholders.
In February 2023, legal challenges from the US Department of Justice (DoJ) were reported in the media. Adobe did comment and had indicated to have “constructive and cooperative discussions with regulators in the US, UK and EU among others”.
The CMA inquiry was not unexpected due to the speculation of the CMA, along with other regulatory bodies, examining the deal. The relationship between the body and tech firms is strained with the investigation of artificial intelligence models and competition concerns.
This was further exemplified in April 2023 when the CMA blocked the Microsoft-Activision merger. This caused alarm in the gaming market and a warning was sent that potentially, the UK is not open to business when tough antitrust concerns are being voiced by the CMA.
Consequently, Adobe is currently in a situation where it is being worried about the influence of the CMA on the deal.
Both Adobe and Figma have talked about engaging the investigation ‘constructively’, but it is an uncertain process to endure through.
Adobe is a multinational software corporation whose main products are the Adobe Creative Cloud and the Adobe Creative Suite. It has been a leader in Creative Cloud solutions since 2005, and has grown to be a leading player in the Creative Suite.Products from Adobe range from design, photography, and video tools, to web and print publishing, and are used by a wide range of customers from business to consumer. Adobe has also recently developed a range of services to enable collaboration and optimize digital treatments.
John Warnock co-founder of Adobe Systems Incorporated is an American computer scientist and entrepreneur best known for helping develop the PostScript page description language and the Portable Document Format (PDF). As the Chairman Emeritus of Adobe, Warnock is one of the most respected figures in the software and tech industry. His works have made a lasting impact on the way we work, share, and design.
