UK sees Adobe's $20bn purchase of Figma as a threat to innovation

More than a year has passed since Adobe announced plans to acquire Figma. The UK's Competition and Markets Authority sees a threat in the potential deal.

Here's What We Know

The UK regulator believes that Adobe's purchase of Figma could harm innovation in the software used by professional designers. The authority launched an investigation in mid-2023 and is now ready to consult with stakeholders, after which a final decision will be made.

Adobe officially announced its intention to acquire the Figma online service in September last year. Initially it was reported that the value of the deal is $15 billion. Later the amount increased to $20 billion.

The startup Figma was founded in 2012, but the online service for interface development and prototyping began operating only four years later. In 2021, the company was valued at $10bn. For this reason, analysts consider the $20bn valuation to be highly inflated.

The UK digital design sector is valued at almost $60bn and accounts for 2.7% of the national economy. It employs more than 850,000 highly skilled professionals.

Source: Reuters