Adobe’s US$20 billion Figma UK deal probe deadline extended
THE UK probe into Adobe’s US$20 billion takeover of Figma was extended after the antitrust watchdog said it needed more time to look at new submissions from the companies.
The Competition and Markets Authority said on Wednesday (Oct 25) that it had pushed back the statutory deadline to Feb 25 from the end of the year. The provisional findings will be published in late November.
The purchase, the biggest ever takeover of a private software company, is seen as a massive bet that more creative work will be done by small businesses and everyday users on the web, a market that Figma has rapidly seized.
While Adobe has introduced less-expensive, streamlined products for that audience, most of its offerings are still heavyweight programmes aimed at specialists.
“In taking this decision, the Inquiry Group had regard to the complexity of this case and the need to carefully consider the merger parties’ detailed submissions received in response to the Annotated Issues Statement and working papers,” said Margot Daly, the group chair, in the statement.
The deal is also under scrutiny from the EU regulator, which recently quizzed rivals and customers on the harm Adobe would cause if it uses its market power to slash the price of Figma’s products or bundles them with its own Creative Cloud offering. The US Department of Justice has also taken issue with the acquisition.
Britain’s CMA has shown a willingness to become increasingly interventionist as it follows up on its promise to clamp down on tech dominance in recent years. The agency is concerned that Adobe’s deal may reduce competition in the all-in-one screen design software market and the creative design market. BLOOMBERG
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