8.5 C
Monday, February 26, 2024

A major merger may fail. British office warns

Must read

Britain warns Adobe’s $20 billion deal to buy Figma will harm competition.

Adobe’s proposed $20 billion merger with Figma would harm competition in product design software by combining two of the industry’s biggest companies, Britain’s competition watchdog said in its latest objection to the deal. The takeover in its current form would also threaten competition in image editing and illustration, the Competition and Markets Authority said on Tuesday.

Office against merger

“Adobe and Figma are two of the world’s leading providers of software for web and app designers, and our research shows them to be close competitors,” said Margot Daly, chair of the CMA’s independent research group. “The proposed deal is therefore likely to impact the UK digital design industry by limiting choice, innovation and the development of new competitive products.”

To ease government concerns, companies may make concessions ahead of a final decision to block the deal, expected at the end of February.

Brussels opposed

This month the European Commission, the EU’s executive body, issued a statement objecting to the deal after a thorough investigation. Brussels competition authorities fear the merger could “significantly reduce competition in global markets” in the supply of interactive product design tools.

The commission said Adobe XD’s product design software will be discontinued as a result of a “reverse takeover,” in which companies remove existing products to deprive a competitor of a recently acquired service.

Both UK and European regulators say Figma could become a future rival to Adobe in image and illustration editing software, suggesting the company will create competitors for Adobe’s Photoshop and Illustrator apps.

Source: New York Times
  • Economy
  • Companies and markets
  • Technologies

Source: Wprost

More articles


Please enter your comment!
Please enter your name here

Latest article