The CMA announced its findings on Tuesday, saying that if the deal goes ahead in its current form, it would eliminate competition in the software markets for product design, image editing, and illustration.
The CMA says that possible remedies it’s considering include either prohibiting the merger entirely or the divestiture of “overlapping operations” in each market where the deal could cause a substantial lessening of competition (SLC) — in other words, where removing Adobe’s rivals leaves consumers with fewer options.
But even if Adobe were willing, separating two of its most popular apps from its Creative Cloud service (which reached almost 30 million paid subscribers last year) is no easy feat.
“The digital design sector is worth nearly £60 billion to the UK – representing 2.7% of the national economy – and employs over 850,000 people in highly skilled work,” said Margot Daly, chair of the independent group conducting the CMA’s investigation.
“The software this sector uses is pivotal to its success, so the CMA has from the outset been very focused on ensuring this merger doesn’t adversely affect such an important part of the UK economy.”
The findings of this investigation aren’t final — this is a provisional verdict that just informs Adobe and Figma of the precise issues preventing the deal from being approved.
The original article contains 558 words, the summary contains 216 words. Saved 61%. I’m a bot and I’m open source!
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The CMA announced its findings on Tuesday, saying that if the deal goes ahead in its current form, it would eliminate competition in the software markets for product design, image editing, and illustration.
The CMA says that possible remedies it’s considering include either prohibiting the merger entirely or the divestiture of “overlapping operations” in each market where the deal could cause a substantial lessening of competition (SLC) — in other words, where removing Adobe’s rivals leaves consumers with fewer options.
But even if Adobe were willing, separating two of its most popular apps from its Creative Cloud service (which reached almost 30 million paid subscribers last year) is no easy feat.
“The digital design sector is worth nearly £60 billion to the UK – representing 2.7% of the national economy – and employs over 850,000 people in highly skilled work,” said Margot Daly, chair of the independent group conducting the CMA’s investigation.
“The software this sector uses is pivotal to its success, so the CMA has from the outset been very focused on ensuring this merger doesn’t adversely affect such an important part of the UK economy.”
The findings of this investigation aren’t final — this is a provisional verdict that just informs Adobe and Figma of the precise issues preventing the deal from being approved.
The original article contains 558 words, the summary contains 216 words. Saved 61%. I’m a bot and I’m open source!