The UK's Competition and Markets Authority (CMA) has objected to Adobe's acquisition of graphic design company Figma, adding to the EU and US concerns about the deal. The UK competition authority has objected to Adobe’s proposed $20 billion acquisition of cloud-based design company Figma, on grounds that it might stifle innovation. According to the results of an investigation by the Competition and Markets Authority (CMA), Adobe’s refusal to provide concessions to alleviate worries about the deal has led to findings that the acquisition would eliminate competition and remove Figma as a threat to Adobe’s main products, Photoshop and Illustrator. Last year, Adobe revealed its intention to acquire Figma, whose platform is designed to enable collaborative app and website design, for $20 billion. Figma is viewed as a significant competitor to Adobe in the design software arena. “Adobe and Figma are two of the world leading providers of software for app and web designers, and our investigation so far has found that they are close competitors,” Margot Daly, chair of the independent group conducting the UK investigation, said in a news release on Tuesday The CMA is considering ways to address its concerns about the merger. Possible remedies include stopping the merger completely or requiring Adobe to sell off parts of its business that overlap with Figma’s, especially in areas where the deal might reduce competition. The investigation into Adobe’s bid isn’t finished yet. Besides the UK’s CMA, the EU and the U.S. Department of Justice are also looking into Adobe’s move to acquire Figma. The EU recently sent Adobe a formal complaint regarding competition concerns, and there were reports that the US Department of Justice might sue to stop the deal. The CMA has given a preliminary decision, pointing out the main problems that must be fixed for the deal to go through. Now, the CMA will ask for opinions on these issues and their possible solutions. Adobe and Figma have until December 19 respond before the CMA makes its final decision on February 25th next year. “The challenge will now be for the merging parties to persuade the competition regulators that they have got the analysis wrong in their provisional assessments,” Alex Haffner, competition partner at UK law firm Fladgate, said in a statement to the media. “Or, more likely, to come up with a package of remedies which can satisfy their stated concerns.” Related content news analysis AI chip shortages continue, but there may be an end in sight While GPUs are in high demand, they still need high-performance memory chips for AI apps. The market is tight for both — for now. By Lucas Mearian May 07, 2024 7 mins CPUs and Processors Generative AI Technology Industry feature Windows 11 Insider Previews: What’s in the latest build? Get the latest info on new preview builds of Windows 11 as they roll out to Windows Insiders. Now updated for Build 22635.3570 for the Beta Channel and Build 26120.461 for the Dev channel, both released on May 3, 2024. By Preston Gralla May 07, 2024 252 mins Small and Medium Business Microsoft Windows 11 news analysis 3+ reasons Apple might want to make its own server chips Apple reportedly has a top secret plan to make AI chips for servers to provide generative AI services. By Jonny Evans May 07, 2024 5 mins Apple CPUs and Processors Generative AI opinion GenAI is to data visibility what absolute zero is to a hot summer day Given the plethora of privacy rules already in place in Europe, how are companies with shiny, new, not-understood genAI tools supposed to comply? (Hint: they can’t.) By Evan Schuman May 06, 2024 6 mins Data Privacy GDPR Generative AI Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe