Adobe is, unsurprisingly, standing its floor after the UK’s competitors watchdog slammed the brakes on its $20 billion plan to buy the cloud-based product design platform Figma. Final month, the Competitors and Markets Authority (CMA) provisionally decided that the deal would hurt the product design software program market ought to it go forward — successfully blocking the acquisition till Adobe addressed the regulator’s issues, which entails the divestiture of “overlapping operations” like Figma Design and the corporate’s competing Adobe XD app.
A response to the CMA’s request for remediations, dated December 14th, was published on the Authority’s website on Monday. Briefly, Adobe is refusing to make any of the advised compromises to ease the CMA’s issues, saying a divestment is “wholly disproportionate.” Adobe mentioned within the assertion that it disagrees with the CMA’s findings, and that “no treatment package deal that preserves the advantages of the transaction shall be enough to resolve the competitors issues.”
The CMA’s suggestions don’t go away Adobe a lot wriggle room: both Adobe has to unload Figma Design — Figma’s predominant product providing and, possible, the most important motivation behind Adobe’s merger bid — or the deal is blocked solely.
Adobe gives a number of counter-arguments in opposition to the CMA investigation throughout the doc. One level, referencing Meta’s attempt to acquire the popular GIF platform Giphy which was additionally blocked by the CMA, claims that mergers being disapproved can scale back innovation and forestall smaller corporations from flourishing underneath the wing of bigger firms.
A listening to is scheduled between the CMA and Adobe on December twenty first — the identical deadline for Adobe to supply remediations — with a closing deadline of February twenty fifth for the company to decide on whether or not to formally block the merger.