Adobe's planned $20B acquisition of Figma, a cloud-based designer platform, may be headed for a full antitrust investigation in the U.K. The country's competition regulator has given the companies five working days to propose "acceptable" solutions to its concerns or face a more in-depth investigation. Both Adobe and Figma provide software for designing digital apps and websites, with Figma challenging Adobe's broader suite of creative tools. - The U.K. Competition and Markets Authority (CMA) has expressed concerns that the deal could lead to reduced innovation, fewer choice, and higher costs for companies relying on Figma and Adobe's digital tools
- The regulator specifically highlighted potential limitations in the supply of screen design software, an area where Adobe and Figma are competitors.
- In response, Photoshop maker Adobe said it has no intention to compete in the product design space and considers Figma's offerings complementary to its core creative products.
- The deal is also facing scrutiny from antitrust authorities in the U.S. and Europe.
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