The UK competition watchdog has opened an investigation into the planned acquisition by Adobe Systems Incorporated (NASDAQ:ADBE) of software group Figma.
California-headquartered tech group Adobe announced the “transformational” cash-and-stock takeover in September 2022 for a US$20bn (£16bn) cash-and-stock consideration.
Figma’s web design tools compete with Adobe’s own product XD.
The Competition and Markets Authority said its investigation will look into whether the acquisitions will result in a “substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
"In the current robust regulatory environment, we expect lengthy reviews of transactions," an Adobe spokesperson said via email.
"We look forward to continuing to engage with the Department of Justice, CMA and European Commission in productive discussions about the businesses, markets and positive economic impacts this deal will bring as they conduct their reviews. As demonstrated in our most recent earnings."
Relevant parties have been given until May 18 to comment on the investigation, with a Phase-1 deadline set for June 20.
Last week, the CMA’s decision to block Microsoft’s US$69bn takeover of gaming rival and Call of Duty publisher Activision Blizzard sent shockwaves through the industry.
Microsoft's president called it “bad for Britain”, saying it would “shake the confidence among the business community in the UK”, with some in the games industry also criticising the CMA ruling.
Article updated at 14.45 with response from Adobe