As the investigation unfolds, the CMA has found that Adobe and Figma are both leading providers of software for app and web designers and are considered direct competitors. If the acquisition takes place, it could have negative repercussions for the U.K’s digital design industry, such as reduced choice, limited innovation, and a decline in the development of new competitive products.
It is important to note that the CMA’s decision is provisional, and the final verdict on the Adobe deal is expected to be announced by February 25.
Likewise, Figma has also expressed its disappointment with the CMA’s provisional findings. The company strongly denies that it competes with Adobe currently or has any intentions to do so in the future. Figma operates in a dynamic and highly competitive market for product design and development, emphasizing that it has not invested resources or talent to build creative tools. Figma remains committed to the proposed combination with Adobe, viewing it as a beneficial move for consumers and urging the approval of the deal.
The acquisition agreement between Adobe and Figma was set at $20 billion in September 2022. However, regulatory backlash has been mounting since then, causing concerns for both companies involved.
On Tuesday, Adobe’s shares saw a slight decline of 0.7% in premarket trading, reaching $614.93. Despite this, the stock has shown significant growth, surging by 84% this year.