On Wednesday, Britain’s competition authority said it was investigating Adobe Inc.’s (ADBE.O) $20 billion takeover of cloud-based designer platform Figma to see if it would “substantially lessen competition” nationwide.
The action underscores regulators’ concerns that huge tech corporations purchasing smaller inventive rivals may stifle competition.
The U.K. Competition and Markets Authority (CMA) banned Microsoft’s $69 billion acquisition of “Call of Duty” creator Activision Blizzard (ATVI.O) last week due to worries it would hurt cloud gaming.
CMA said it would make its phase 1 Adobe-Figma transaction decision by June 30.
“We look forward to continuing to engage with the DOJ (U.S. Department of Justice), CMA and E.C. (European Commission) in productive discussions about the businesses, markets and positive economic impacts this deal will bring as they conduct their reviews,” Adobe stated.
Figma pledged to “continue to engage constructively with regulators in the U.K..”
Adobe announced a cash-and-stock deal for Figma in September, the largest buyout of a privately owned software startup. Zoom Video Communications (ZM.O), Airbnb Inc (ABNB.O), and Coinbase (COIN.O) use Figma’s web-based collaborative platform for designs and brainstorming.
In March, the business stated it was working with the DOJ to conclude the acquisition by 2023.
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