UK's Digital Economy at Risk: CMA Questions Adobe's Figma Acquisition
- June 30th, 2023
- 330 views
The Competition and Markets Authority (CMA) in the UK has expressed concerns about Adobe Inc.'s (Nasdaq: ADBE) acquisition of Figma, a leading provider of screen design and whiteboarding tools. The CMA's investigation revealed that both companies compete in the supply of screen design software and creative design software, driving innovation and investment in these areas. The deal could potentially harm competition, innovation, and the UK's digital economy.
The CMA is particularly worried about the impact on the development of digital services, such as apps and websites, which heavily rely on the software products offered by Adobe and Figma. The removal of a major player from the market and reduced competition could result in higher costs and fewer innovative products for businesses that depend on these tools.
Sorcha O'Carroll, Senior Mergers Director at the CMA, emphasized the importance of maintaining competition and innovation in the sector. Adobe has been given five working days to propose solutions to address the CMA's concerns. If viable solutions are not provided, the investigation will proceed to a more detailed phase.
The software tools examined by the CMA during the investigation include screen design, vector editing, raster editing, video editing, and motion design. These tools play a vital role in the creative industries sector, enabling the creation of visually appealing and interactive digital content.
On Friday, $ADBE closed at $488.99, up $5.22 (1.08%).
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