Competition and innovation at risk in Adobe’s acquisition of Figma
- UK regulator finds Adobe’s $20 billion purchase of Figma would harm innovation
- Deal would eliminate competition between two main competitors in product-design software
- Reduction in innovation and development of new competitive products
- Figma would no longer be a threat to Adobe’s flagship Photoshop and Illustrator products
The U.K. Competition and Markets Authority has provisionally found that Adobe’s planned $20 billion acquisition of collaboration-software company Figma would likely harm innovation for software used by the vast majority of U.K. digital designers. The regulator’s detailed Phase 2 investigation revealed that the deal would eliminate competition between two main competitors in product-design software, leading to a reduction in innovation and the development of new competitive products. Additionally, the acquisition would remove Figma as a threat to Adobe’s flagship Photoshop and Illustrator products.
Factuality Level: 8
Factuality Justification: The article provides specific information about the U.K. Competition and Markets Authority’s provisional findings regarding Adobe’s acquisition of Figma. It mentions the potential harm to innovation and competition in the software market. The information is based on the regulator’s detailed Phase 2 investigation.
Noise Level: 8
Noise Justification: The article provides a brief summary of the U.K. Competition and Markets Authority’s provisional findings on Adobe’s acquisition of Figma. However, it lacks in-depth analysis, evidence, and data to support the claims made by the regulator. The article does not explore the consequences of the deal on those who bear the risks, nor does it provide actionable insights or solutions. It also does not stay on topic and dives into unrelated territories such as mentioning Adobe’s flagship products. Overall, the article contains some relevant information but lacks scientific rigor, intellectual honesty, and thorough analysis.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets may be impacted by the U.K. Competition and Markets Authority’s findings on Adobe’s acquisition of Figma. This could affect the stock prices of both companies involved and potentially impact the software industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article pertains to a financial topic as it discusses the U.K. Competition and Markets Authority’s findings on Adobe’s acquisition of Figma. The acquisition could have implications for competition and innovation in the software industry, which may impact financial markets. However, there is no mention of an extreme event in the article.
Public Companies: Adobe (ADBE)
Private Companies: Figma
Key People:
Reported publicly:
www.marketwatch.com 
www.wsj.com 
