UK competition watchdog opens probe into Adobe’s $20bn buyout of Figma
03 May 2023 - 20:03
byRadhika Anilkumar and Eva Mathews
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Britain’s competition watchdog said on Wednesday it was looking into Adobe’s $20bn buyout deal for cloud-based designer platform Figma to find if it could lead to “substantial lessening of competition” in the country.
The move underlines regulators’ worries that large tech firms acquiring smaller innovative rivals could throttle competition.
The UK’s Competition and Markets Authority (CMA) last week blocked US software giant Microsoft's $69bn acquisition of “Call of Duty” maker Activision Blizzard over concerns it would hinder cloud gaming.
CMA said it has set June 30 as the deadline for its phase 1 decision on the Adobe-Figma deal.
“We look forward to continuing to engage with the DOJ (US department of justice), CMA and EC (European Commission) in productive discussions about the businesses, markets and positive economic impacts this deal will bring as they conduct their reviews,” Adobe said.
Figma said it would “continue to engage constructively with regulators in the UK”.
Adobe in September announced a cash-and-stock deal for Figma, the biggest buyout of a privately owned software start-up, whose web-based collaborative platform for designs and brainstorming is widely popular among tech firms including Zoom Video Communications, Airbnb Inc and Coinbase.
The company said in March it was working with the department of justice on clearing the deal and expected it to close by the end of 2023.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
UK competition watchdog opens probe into Adobe’s $20bn buyout of Figma
Britain’s competition watchdog said on Wednesday it was looking into Adobe’s $20bn buyout deal for cloud-based designer platform Figma to find if it could lead to “substantial lessening of competition” in the country.
The move underlines regulators’ worries that large tech firms acquiring smaller innovative rivals could throttle competition.
The UK’s Competition and Markets Authority (CMA) last week blocked US software giant Microsoft's $69bn acquisition of “Call of Duty” maker Activision Blizzard over concerns it would hinder cloud gaming.
CMA said it has set June 30 as the deadline for its phase 1 decision on the Adobe-Figma deal.
“We look forward to continuing to engage with the DOJ (US department of justice), CMA and EC (European Commission) in productive discussions about the businesses, markets and positive economic impacts this deal will bring as they conduct their reviews,” Adobe said.
Figma said it would “continue to engage constructively with regulators in the UK”.
Adobe in September announced a cash-and-stock deal for Figma, the biggest buyout of a privately owned software start-up, whose web-based collaborative platform for designs and brainstorming is widely popular among tech firms including Zoom Video Communications, Airbnb Inc and Coinbase.
The company said in March it was working with the department of justice on clearing the deal and expected it to close by the end of 2023.
Reuters
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