The British competition authority CMA is investigating the planned takeover of the Figma design tool by Adobe.

The British antitrust authority Competition and Markets Authority is concerned about the planned takeover of the design tool Figma by the larger Adobe.

WHO

Figma saw the light of day in 2016 and is mainly used for screen design and interface design. The application places great emphasis on real-time collaboration.

Issue

Adobe is willing to pay $20 billion for Figma, an offer that’s been on the table since September last year. With the takeover, the CMA fears that designers of online products will be severely restricted in their selection. In addition, the regulator is concerned about restricting possible innovations through this move.

When it comes to screen design, Adobe and Figma offer similar products. According to the CMA, CMA is now firmly positioned in this market and Adobe has made significant investments in recent years to strengthen its position in this space. This healthy competition has now led to many innovations in the field of design and related software. Brits now fear they will disappear if both companies operate under the same flag.

Many start-ups and established companies in the UK use the services of Adobe or Figma. If that competition disappears, according to the CMA, there’s a good chance that the lack of much-needed innovation will ultimately result in poorer quality and higher prices. That’s exactly why regulators were investigating a Broadcom acquisition of VMware earlier this year.

Unless Adobe can demonstrate that all of these concerns are unfounded by the end of this working week, the CMA will initiate an in-depth investigation. If the company meets this deadline, the CMA has five business days to evaluate Adobe’s response.

The authorities across the Channel are not the only ones watching this takeover, the EU has already expressed its concern on the matter.