The Competition and Markets Authority has launched a further investigation into Adobe’s acquisition of Figma, the web design company.

In its phase 2 probe, the CMA will investigate via a panel of independent experts if the merger will result in less competition in the design software industry.

Plans for the new investigation were announced on 30 June, much to the of Adobe, which tried to buy Figma for $20 billion. Adobe claimed it was committed to keeping Figma an independent company, saying it had no plans to change the pricing of its offerings, including its free options.

Figma, the San Francisco based company, was founded in 2012, and offers cloud-based software for vector-based design, making it a direct competitor to some of Adobe’s Creative Cloud offerings, including Illustrator and XD.

The CMA found that competition between the two companies actually increased investment in improving services “this important rivalry could be lost if the deal goes ahead,” the authority wrote at the time the investigation was announced.

Recommended

• Scotland’s Synthetic Data Journey
• ICO Approves Data Sharing for Financial Checks on Gambling Sites
• Elon Musk Launches New Artificial Intelligence Startup, xAI

Adobe argued that their acquisition of Figma would enhance their companies’ respective products, offering Figma’s services the functionality of Adobe systems, with Adobe benefiting from Figma’s features.

The UK is not the only country challenging the deal – the merger is being challenged in the US, and the EU is due to make their decision on the deal by 27 August.

Adobe still hopes to go ahead with the merger – the largest in its 41-year-history  – but these plans may be foiled if any of these nation’s regulatory bodies decide to press further with investigations, or rule the deal as anti-competitive.