Britain’s competition watchdog announced Thursday it has opened an investigation into software giant Adobe over concerns the company may have deceived customers about costly cancellation fees.
The Competition and Markets Authority will examine whether Adobe properly informed subscribers about early termination charges that could significantly impact purchasing decisions. Officials want to determine if customers received adequate advance notice about these fees when signing up for services.
Adobe creates popular creative software including Photoshop, Illustrator and Adobe Premiere that millions of people worldwide use for photo editing, graphic design and video production.
“From students to content creators, millions of people rely on digital design tools — and they should feel confident that businesses selling these services play by the rules,” stated Emma Cochrane, the CMA’s Executive Director for Consumer Protection.
This British inquiry comes just days after Adobe agreed to pay $150 million to settle a U.S. federal lawsuit that accused the company of harming consumers by hiding substantial termination fees and creating barriers to subscription cancellations.
Following that settlement announcement last Friday, Adobe stated it has recently improved and simplified both its enrollment and cancellation procedures while increasing transparency for customers.
Adobe has not yet responded to requests for comment regarding the new British regulatory investigation.
The British authority emphasized it has not reached any determinations about potential legal violations at this preliminary stage. This marks the ninth company the CMA is examining under expanded enforcement authority that allows direct action against businesses rather than requiring court proceedings.
These enhanced powers enable the competition authority to independently determine consumer law violations and impose remedies including financial penalties and customer compensation when warranted.
