2023-11-28 11:43:11 ET
Adobe Inc (NASDAQ: ADBE) is in focus today after the Competition & Markets Authority of the United Kingdom said letting it buy Figma could hurt competition.
CMA reveals its provisional findings on Adobe-Figma deal
The antitrust watchdog is concerned that the $20 billion agreement could “remove Figma as a threat to Photoshop and Illustrator products”.
Adobe is currently facing scrutiny over its attempt to acquire Figma in European Union and the United States as well.
What CMA released on Tuesday is its provisional findings but the regulator said possibility of “blocking the deal outright” remains on the table.
The news arrives only days before Adobe Inc is scheduled to report its financial results for the fourth quarter. Consensus is for it to earn $3.32 a share versus $2.78 per share a year ago.
“The solutions we work on together stand to improve the lives of millions of people.” IAccessible cofounder Manish Agrawal is on a mission to create inclusive technology. Explore his journey & how #AdobeFirefly is enabling creative solutions for his team: https://t.co/0Exp71nPEs
— Adobe (@Adobe) November 10, 2023
Adobe Inc and Figma remain committed to their deal
CMA also said this morning that letting Figma be a part of Adobe Inc could reduce innovation as well – a perspective that neither of the two companies agree with.
Both Adobe and Figma told CNBC today that they will continue to work with the competition watchdog to win its approval for the deal that they are convinced unlocks significant value for consumers.
The two companies have until December 19 th to respond to the provisional findings of the Competition & Markets Authority of the United Kingdom who’s slated to announce its final verdict on the Adobe-Figma agreement by February 25 th .
Wall Street currently has a consensus “overweight” rating on .
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