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The Adobe Systems logo is displayed outside one of the company’s offices.
David Paul Morris | bloomberg | Getty Images
Britain’s competition watchdog said on Wednesday it was looking into the matter Adobe IncThe $20 billion acquisition of cloud-based designer platform Figma is to see if it can lead to a “significant reduction of competition” in the country.
The move underscores regulators’ concerns that big tech companies acquiring smaller innovative competitors could stifle competition.
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The UK’s Competition and Markets Authority (CMA) last week blocked US software giant Microsoft’s $69 billion acquisition of software maker Activision Blizzard over concerns it would hinder cloud gaming.
The Capital Markets Authority said it has set June 30 as the deadline for its Phase 1 decision on the Adobe-Figma deal.
“We look forward to continuing to engage with the US Department of Justice (DOJ), CMA, and EC (European Commission) in productive discussions about the positive business, market, and economic impacts this transaction will have as they conduct their reviews,” Adobe said. .
Figma said it would “continue to engage constructively with UK regulators”.
Adobe in September announced a cash-and-stock deal for Figma, its largest purchase of a privately owned software startup whose web-based collaborative platform for creatives and brainstorming is popular among tech companies including Zoom Video Communications, Airbnb Inc and Coinbase.
The company said in March that it was working with the Justice Department to clear the deal and expected it to close by the end of 2023.
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