: Adobe’s stock falls after U.K.’s CMA said $20 billion Figma purchase raises competition concerns

Shares of Adobe Inc. ADBE fell 0.6% in premarket trading Tuesday, after the U.K.’s Competition & Markets Authority said the California-based software company’s proposed $20 billion deal to buy design tools maker Figma was expected to result in a “substantial lessening of competition” in a number of markets. The markets which could be hurt include all-in-one product design software for professional users, vector editing software and raster editing software. The CMA also found that the merger isn’t expected to result in an SLC for the video editing software and motion design software markets. The CMA said a full report of its investigation into the merger will be published “shortly.” The deadline for submitting responses to the provisional finding of competition concerns is Dec. 19, 2023 and the deadline for submitting responses to the notice of possible remedies is Dec. 12. Adobe’s stock has run up 16.9% over the past three months through Monday, while the SPDR S&P Software & Services ETF XSW has gained 2.9% and the S&P 500 SPX has tacked on 2.6%.

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