Adobe Faces Potential Penalties Amid FTC Scrutiny Into Subscription Cancellation Practices
Portfolio Pulse from Benzinga Neuro
Adobe Inc. (NASDAQ:ADBE) is under investigation by the FTC for potential violations of the Restore Online Shoppers' Confidence Act regarding its subscription cancellation policies. The inquiry, which began in June 2022, could lead to fines or penalties. Adobe is cooperating with the FTC and believes its practices are lawful. This scrutiny follows another regulatory challenge in the UK, where Adobe's proposed acquisition of Figma is being examined for antitrust concerns.
December 14, 2023 | 11:47 am
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Adobe Inc. is under FTC investigation for its subscription cancellation policies, which could result in fines or penalties. The company is also facing antitrust scrutiny in the UK over its Figma acquisition.
The FTC investigation into Adobe's subscription practices poses a risk of financial penalties, which could negatively impact investor sentiment and the stock price in the short term. The ongoing antitrust concerns in the UK add to the regulatory pressures that could affect Adobe's future growth and market position, further contributing to potential negative sentiment.
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