UK regulator says Adobe's $20 billion Figma deal could harm sector

Britain's competition regulator said on Tuesday Photoshop owner Adobe's $20 billion buyout of cloud-based designer platform Figma would "likely harm innovation for software used by the vast majority of UK digital designers".

The deal would eliminate competition and remove Figma as a threat to Adobe's flagship Photoshop and Illustrator products, according to findings from an in-depth probe that the Competition and Markets Authority (CMA) launched in July, after Adobe refused to offer concessions to ease its concerns.

Both Adobe and Figma did not immediately respond to Reuters requests for comment.


Adobe's chief counsel Dana Rao told Reuters earlier this month that the company was open to proposing remedies to resolve regulatory concerns.

The CMA said on Tuesday its findings were provisional and that it was open to consult with interested parties before making a final decision.

The antitrust probe comes amid heightened regulatory scrutiny around the world on Big Tech acquisitions that boost the market power of dominant companies, or on deals involving startups seen as nascent rivals.

The EU's competition watchdog had also expressed concerns about the Adobe-Figma deal, announced in September 2022.