The British competition watchdog said that it is considering if the deal would create a relevant merger situation under the merger provisions of the Enterprise Act 2002
UK CMA begins probe into the $20bn deal between Adobe and Figma. (Credit: Adobe)
The UK Competition and Markets Authority (CMA) has launched a phase 1 investigation into the previously announced software major Adobe’s $20bn acquisition of web-first collaborative design platform Figma.
The British competition watchdog said that it is considering if the deal would create a relevant merger situation under the merger provisions of the Enterprise Act 2002.
Besides, the regulator will investigate whether the proposed transaction would lead to a significant reduction in competition within any market or markets in the UK for services or goods.
For helping with its assessment, the CMA is seeking comments on the proposed acquisition from interested parties. The last date for filing the comments is 18 May 2023.
The date for deadline for the phase 1 decision is 30 June 2023, said the anti-trust regulator.
UK CMA stated: “The Competition and Markets Authority (CMA) hereby gives notice pursuant to section 96(2A) of the Act that the merger notice provided by Adobe Inc. (Adobe) and Figma, Inc. (Figma) in relation to the anticipated acquisition by Adobe of Figma (the Merger) meets the requirements of section 96(2) of the Act.”
Adobe announced the cash and stock deal in September 2022. The consideration of the deal is made up of nearly half cash and half stock.
Established in 2012, Figma serves as a collaborative web application that is said to assist those who design interactive mobile and web applications to collaborate via multi-player workflows, design systems, and a developer ecosystem.
In February 2023, the European Commission (EC) said that it will review the proposed deal under the EU merger regulation (EUMR).
The request to review the deal was submitted to the EC by Austria, Belgium, Cyprus, Bulgaria, Denmark, Czechia, Finland, France, Iceland, Ireland, Germany, Italy, the Netherlands, Luxembourg, Sweden, and Norway.