A Adobe announced in September 2022 that it intends to buy a startup that created a visual application development tool. figure. Now the purchase is slowly moving forward and the UK Competition and Markets Authority (SMA) announced that it would conduct a thorough investigation into the acquisition, fearing that the merger of the two companies would cause a decrease in competition.

Buying Adobe Figma could be a competitive challenge

In an official note published on the government’s website, the agency says the agreement between the engineering companies’ tools “could be detrimental to the UK’s digital economy”. Officials say the competition between the two companies is fueling “investment in updating and developing software for designing app screens.”

ABOUT SMA believes that if a $20 billion purchase figure For Adobe be realized, i.e. rivalry in the app design industry may be lost. In addition, the organization notes that Adobe is a leading provider of tools for graphics, video and animation content and this acquisition could eliminate a potential competitor in these areas.

Credits: Disclosure/Adobe

The authorities note that the preliminary investigation found that “ figure is a new competitive threat to Adobe in all these tools and what figure is well positioned to expand its offer and provide more restraint Adobe“.

Finally, SMA points out that “The app development economy in the UK was estimated at £19.4 billion in 2022. The CMA is concerned that Adobe’s plan to acquire Figma removes a top player from the market and reduces the incentives for both companies to invest in software development and compete with each other. , which can lead to higher costs as well as less and less innovative products.”

Now Adobe has up to five working days to respond to these concerns from the UK authorities if the company’s response is not convincing SMAentity will initiate further acquisition investigations figure.

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Via: Engadget Source: CMA

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