Regulator says Adobe’s Figma acquisition could ‘harm’ UK digital design sector
The UK’s competition watchdog has provisionally found Adobe’s proposed $20bn (£16bn) acquisition of Figma could harm the country’s digital design sector.
Although a final decision still awaits, the Competition and Markets Authority (CMA) has sounded alarm bells about the impact of the deal on market competition and innovation within the product design, image editing, and illustration software industry.
The regulator said today that the acquisition, if approved, would eliminate a major competitor for Adobe’s flagship products like Photoshop and Illustrator.
The CMA found around 80% of the professional product design market use Figma’s software.
Margot Daly, chair of the independent group overseeing the investigation, said: “Adobe and Figma are two of the world leading providers of software for app and web designers and our investigation so far has found that they are close competitors.
“This proposed deal, therefore, has the potential to impact the UK’s digital design industry by reducing choice, innovation and the development of new competitive products.”
According to the CMA, the digital design sector represents 2.7 per cent of the national economy and is worth almost £60bn to the UK.
The CMA has invited responses from stakeholders by 19 December 2023, ahead of a final decision slated for 25 February 2024. The outcome could block the deal outright.
In response to the findings, Adobe said: “We are disappointed in the CMA’s findings and disagree with the CMA’s perspective on this transaction.
“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.”
A Figma spokesperson said: “We are disappointed by the CMA’s provisional findings and strongly disagree with the assertion that Figma competes with Adobe today or has plans to do so in the future.
“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.”