Britain’s competition watchdog has said Adobe’s proposed $20 billion acquisition of Figma could hurt competition.
The Competition and Markets Authority (CMA) found the deal might “eliminate competition” and “reduce innovation.”
The agency also added that it will potentially “remove Figma as a threat to Adobe’s flagship Photoshop and Illustrator products.”
Read More: EU Orders Illumina To Unwind Grail Acquisition
The findings are preliminary but the regulatory body is considering potential remedies, including blocking the acquisition altogether.
Adobe announced its plan to acquire Figma, a platform facilitating collaborative work on app and website design, in September last year.
The US Department of Justice and the European Union have examined the deal in addition to the scrutiny faced from the UK.
Read More: Google Faces Antitrust Probe In Japan Over Search Practices
In a released statement, the CMA expressed a provisional conclusion the merger could stifle competition between close rivals.
The regulator said the move could remove a significant competitive constraint on Figma, a dominant player in the market.
The authority emphasized that there are few other competitive constraints in this space.
The CMA said the deal could “eliminate competition,” “reduce innovation” and “remove Figma as a threat to Adobe’s flagship Photoshop and Illustrator products, in a statement.
“Adobe and Figma will deliver significant value to customers”
A Figma spokesperson said the firm is “disappointed” by the CMA’s findings.
Looking to boost your online brand? Create your FREE business profile at WhatBiz? here.
The spokesperson said: “The facts are Figma operates in a dynamic and highly-competitive market for product design and development, and Figma has not spent a single dollar or hired a single engineer to build creative tools.
“We remain committed to the deal, confident in the facts, and convinced our proposed combination with Adobe is a win for consumers and should be approved.”
Need Career Advice? Get employment skills advice at all levels of your career
Adobe also expressed disappointment and said it disagrees with the provisional findings.
The company said: “Adobe and Figma will deliver significant value to customers.
“We are reviewing the provisional findings and will reengage with the CMA on the facts and merits of the case.”
