Britain's competition regulator on Friday said Photoshop owner Adobe Inc's $20 billion buyout of cloud-based designer platform Figma could reduce innovation.
The Competition and Markets Authority (CMA) said the deal would be referred to a phase 2 investigation "unless the parties offer acceptable undertakings to address these competition concerns."
Adobe and Figma did not immediately respond to Reuters' request for comment.
(Reporting by Eva Mathews in Bengaluru; Editing by Janane Venkatraman)