CMA shelved the Figma acquisition and asked Adobe to submit a new proposal within five days

CTOnews.com July 1 news, the British Competition and Markets Authority (CMA) recently shelved the Figma acquisition, believing that once the Adobe acquisition is approved, it may threaten the competition of the whole industry.

CMA believes that the competition between Adobe and Figma will help promote the update and development of screen design software. CMA worries that approving the acquisition will lead to the disappearance of competition and the stifling of innovation.

CMA believes that Figma has a large share of the screen design software market, and Adobe continues to invest to maintain competitiveness. CTOnews.com cites CMA as saying that many startups and other companies rely on products developed by these companies, and acquisitions may push up prices and lead to less innovation.

CMA said Adobe and Figma must submit legally binding proposals within five working days to address these concerns. CMA will spend another five working days evaluating the proposals, and if the proposals still do not meet CMA expectations, they will enter the second phase of the review.