Zinger Key Points
- UK's CMA warns Adobe's $20B Figma deal may hinder software innovation, affecting product design and image editing sectors.
- Adobe and Figma reportedly dispute CMA's provisional findings.
- Markets are swinging wildly, but for Matt Maley, it's just another opportunity to trade. His clear, simple trade alerts have helped members lock in gains as high as 100% and 450%. Now, you can get his next trade signal—completely free.
The U.K. Competition and Markets Authority (CMA) has provisionally concluded that Adobe Inc's ADBE proposed $20 billion acquisition of Figma could harm innovation in software used by U.K. digital designers.
Also Read: EU's Antitrust Warning Looms Over Adobe's $20B Figma Takeover Bid: Report
The CMA's detailed Phase 2 investigation suggests the deal might reduce competition in product-design software, stifle innovation, and eliminate Figma as a competitive threat to Adobe's major products like Photoshop and Illustrator.
Adobe expressed disappointment and disagreement with the CMA's findings, emphasizing the deal's potential value for customers, the Wall Street Journal reports.
Figma also disagreed with the CMA's view, stating it does not compete with Adobe currently or plans to in the future.
The CMA identified concerns in three software markets: product design, image editing, and illustration, noting the significance of these sectors in the U.K.'s economy.
The CMA will consult further and consider responses from interested parties until December 19 before making a final decision.
Recently, U.S. chipmaker Broadcom Inc AVGO and cloud software company VMware, Inc VMW won every regulatory approval required to close the merger deal. Also, recent reports indicated that Amazon.Com Inc's AMZN proposed acquisition of Roomba robot vacuum maker IRobot Corp IRBT will likely get unconditional approval from EU antitrust authorities.
Price Action: ADBE shares traded lower by 0.55% at $615.83 premarket on the last check Tuesday.
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