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{"id":36354,"date":"2023-06-30T21:57:55","date_gmt":"2023-06-30T21:57:55","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/06\/30\/uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition\/"},"modified":"2023-06-30T21:57:56","modified_gmt":"2023-06-30T21:57:56","slug":"uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/06\/30\/uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition\/","title":{"rendered":"UK readies in-depth investigation into Adobe\u2019s $20B Figma acquisition"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/06\/30\/uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition\/<\/a><\/br>
\nUK readies in-depth investigation into Adobe\u2019s $20B Figma acquisition<\/br>
\n2023-06-30 21:57:55<\/br><\/p>\n

\n

The U.K.\u2019s Competition and Markets Authority (CMA) has provisionally concluded<\/a> that Adobe\u2019s proposed $20 billion bid<\/a> for digital design rival Figma could result in a \u201csubstantial lessening of competition\u201d in the U.K for designers.<\/p>\n

As a result of its initial findings, the CMA is progressing the case to an in-depth \u201cphase 2\u201d investigation, albeit the parties concerned have five days to submit proposals that address the CMA\u2019s concerns.<\/p>\n

Multifront investigation<\/h2>\n

Today\u2019s announcement comes almost two months after the CMA first revealed<\/a> it was looking into the merger that was first announced last September, inviting comments and submissions from relevant parties. Back in February, the European Commission (EC) also revealed it was assessing the acquisition<\/a> on competition grounds, with early indications suggesting that a lengthy investigation is on the cards<\/a>. And elsewhere, the U.S. Department of Justice (DoJ) is also reportedly\u00a0readying a lawsuit<\/a> to block the deal.<\/p>\n

To many outside observers, the growing regulatory blockades to the Adobe\/Figma merger is not a huge surprise<\/a>, given that the deal would certainly <\/span>remove a major rival from Adobe\u2019s path<\/a>.<\/p>\n

In its findings published today, the CMA pointed to Adobe\u2019s creative design software suite spanning illustrations, photos, videos and animations, and compared it with Figma, which it said offers \u201csome basic creative design functionality as part of its screen design software\u201d but lacks \u201cadvanced or standalone creative design tools.\u201d<\/p>\n

On the other hand, the CMA noted that Figma is the \u201clargest supplier of all-in-one screen design software,\u201d which can be used for web and app design, as well as digital marketing \u2014 markets in which Adobe operates.<\/p>\n

While Adobe and Figma\u2019s products are not like-for-like identical, the CMA has provisionally found that Adobe\u2019s XD vector design tool<\/a> \u201cremains one of only a limited number of close alternatives to Figma.\u201d On top of that, the CMA said that its investigation found that Adobe had been in the process of developing a new all-in-one design tool that included a range of features, including whiteboarding, marketing and product design, which it canceled ahead of its merger announcement with Figma.<\/p>\n

\u201cThe evidence suggests that Adobe\u2019s efforts in product development were motivated, at least in part, by a desire to compete with Figma,\u201d the CMA\u2019s initial report notes<\/a>. \u201cAdobe\u2019s internal documents regularly reference competing with Figma and compare planned features to those offered by Figma.\u201d<\/p>\n

In terms of standalone, purpose-specific creative design software, the CMA acknowledged that Figma is currently not a major Adobe competitor on this front, though it does offer some of this functionality in its screen-design product such as vector-editing. However, it also noted that Figma \u201chas regularly explored\u201d expanding its product suite into this realm through internal development or acquisitions.<\/p>\n

\u201cAs a result, the CMA found that the merger would remove a significant competitive threat to Adobe from the market and result in a substantial lessening of competition,\u201d it said.<\/p>\n

An Adobe spokesperson said that combining Adobe and Figma will \u201cdeliver significant value to customers by making product design more accessible and efficient, reimagining creative capabilities on the web and creating new categories of creativity and productivity.\u201d<\/p>\n

The spokesperson also added that Adobe had no \u201cmeaningful\u201d plans to compete with Figma in the broader product design realm, and that bringing Figma under its wing would be an \u201cadjacency\u201d to Adobe\u2019s core creative tools.<\/p>\n

So the long and short of all this is that the CMA is now likely progressing things to an in-depth phase 2 investigation, with Adobe and Figma given until July 7 to provide an acceptable resolution to the CMA\u2019s concerns \u2014 however, it sounds as though Adobe isn\u2019t planning on submitting anything ahead of this deadline.<\/p>\n

\u201cWe look forward to establishing these facts in the next phase of the process, and successfully completing the transaction,\u201d the spokesperson added.<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:https:\/\/techcrunch.com\/2023\/06\/30\/uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/06\/30\/uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition\/ UK readies in-depth investigation into Adobe\u2019s $20B Figma acquisition 2023-06-30 21:57:55 The U.K.\u2019s Competition and Markets Authority (CMA) has provisionally concluded that Adobe\u2019s proposed $20 billion bid for digital design rival Figma could result in a \u201csubstantial lessening of competition\u201d in the U.K for designers. As a result of its initial findings, the CMA […]<\/p>\n","protected":false},"author":1,"featured_media":36355,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-36354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\nUK readies in-depth investigation into Adobe\u2019s $20B Figma acquisition - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2023\/06\/30\/uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK readies in-depth investigation into Adobe\u2019s $20B Figma acquisition - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source:https:\/\/techcrunch.com\/2023\/06\/30\/uk-readies-in-depth-investigation-into-adobes-20b-figma-acquisition\/ UK readies in-depth investigation into Adobe\u2019s $20B Figma acquisition 2023-06-30 21:57:55 The U.K.\u2019s Competition and Markets Authority (CMA) has provisionally concluded that Adobe\u2019s proposed $20 billion bid for digital design rival Figma could result in a \u201csubstantial lessening of competition\u201d in the U.K for designers. 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