Adobe's acquisition of Figma referred to in-depth probe by UK regulator
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The U.K.'s Competition and Markets Authority (CMA) referred Adobe's (NASDAQ:ADBE) $20B acquisition of Figma for an in-depth investigation, after the companies informed the regulator that they would not offer certain undertakings to ease the concerns.
The antitrust regulator said it referred the acquisition deal for a 'phase 2' in-depth investigation, noting that the merger may result in a substantial lessening of competition in a market or markets in the U.K.
On June 30, the CMA said that Adobe's acquisition of Figma could reduce innovation, and could also lead to less choice for designers of digital apps, websites and other products, among other things.
The CMA had given the companies five working days to submit proposals to address the agency's concerns. However, on July 7, the companies informed the CMA that they would not offer such undertakings to the agency.
According to the CMA, the statutory deadline for the phase 2 probe is Dec. 27.
Adobe (ADBE) had announced the acquisition of Figma, which provides web-based design tools, in September 2022. The CMA had notified the companies of launching a merger inquiry in May.
According to a report, the proposed acquisition could also see an in-depth review by European antitrust regulators.
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