UK Regulator Extends Probe Into Adobe's $20 Billion Figma Acquisition to February 2024

Regulators Prolong Examination of Adobe's Largest Ever Private Software Acquisition Amid Concerns Over Reduced Competition and Potential Abuse of Market Power

The UK's Competition and Markets Authority (CMA) has extended its probe into Adobe's $20 billion acquisition of Figma to February 2024, allowing for more time to review new submissions from both companies.
The CMA's concerns center around potential reduction in competition in the all-in-one screen design and creative design markets due to this acquisition.
Despite Adobe launching more affordable, streamlined products for everyday users and small businesses, the majority of its offerings are designed for specialists, while Figma has effectively catered to a wider audience, attracting the attention of various tech-based companies.
The EU regulator and the U.S. Department of Justice are also examining Adobe's deal, with concerns over Adobe exploiting its market dominance to considerably lower Figma product prices or bundling them with its own Creative Cloud offerings.
This acquisition, the largest ever for a private software company, is seen as a significant bet that more creative work will be done by small businesses and everyday users on the web, a market which Figma has rapidly dominated.