The regulator said today (Friday 30 June) that the deal could potentially mean “less choice for designers”, as the two businesses would stop competing with each other.

Sorcha O’Carroll, senior mergers director at the CMA, said: “We’re worried this deal could stifle innovation and lead to higher costs for companies that rely on Figma and Adobe’s digital tools, as they cease to compete to provide customers with new and better products.”

The watchdog has asked Adobe to come up with solutions that can allay its concerns about the deal. If Adobe's response proves unsatisfactory, the CMA will launch a deeper investigation into the deal and could ultimately block it, if such action is deemed necessary.

The proposed deal was originally announced in September last year.

Adobe said: “The combination of Adobe and Figma will deliver significant value to customers by making product design more accessible and efficient, reimagining creative capabilities on the...