Investing
UK regulator may refer Adobe’s $20 billion Figma deal to deeper probe
© Reuters. FILE PHOTO: Adobe logo is seen on smartphone in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Britain’s competition regulator on Friday said Photoshop owner Adobe (NASDAQ:) Inc’s $20 billion buyout of cloud-based designer platform Figma could “reduce innovation” and may be referred to a deeper investigation.
The Competition and Markets Authority (CMA) said the deal would be referred to a phase 2 investigation “unless the parties offer acceptable undertakings to address these competition concerns.”
Adobe has five working days to submit proposals to address the regulator’s concerns, CMA added.
“We’re worried this deal could stifle innovation and lead to higher costs for companies that rely on Figma and Adobe’s digital tools,” Sorcha O’Carroll, Senior Mergers Director at the CMA said.
“We remain confident in the merits of the case as Figma’s product design is an adjacency to Adobe’s core creative products and Adobe has no meaningful plans to compete in the product design space,” Adobe said in a statement emailed to Reuters.
“We look forward to establishing these facts in the next phase of the process and successfully completing the transaction.”
“We believe strongly that our proposed combination with Adobe will not result in any reduction of competition in our respective markets,” a Figma spokesperson told Reuters.
“We look forward to continued conversations with the CMA focused on the benefits a combined Adobe-Figma entity will bring.”
Read the full article here
-
Side Hustles6 days ago
Mark Zuckerberg Is Now Second Richest Person in the World
-
Investing6 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles7 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles7 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Side Hustles6 days ago
Meta Previews Movie Gen, AI Tools That Turn Dreams to Videos
-
Investing4 days ago
Hurricane Helene Hits Spruce Pine Mine, Quartz Used for Tech
-
Passive Income7 days ago
How AI-Driven Personalization Is Transforming the Retail Industry
-
Investing5 days ago
Israel stocks lower at close of trade; TA 35 down 0.23% By Investing.com