LONDON, March 19 (Reuters) - Britain's competition
regulator has launched an investigation into Photoshop maker
Adobe to examine whether its early cancellation fees
were unfair and misleading, the watchdog said on Thursday.
The Competition and Markets Authority (CMA) will look at
whether customers are given "clear and timely information
upfront" about early cancellation fees, which are likely to
influence their decision to purchase the product, it said.
Adobe's products, such as Photoshop, Illustrator and Adobe
Premiere, are widely used by consumers to create and edit
content such as photographs and videos.
"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," Emma
Cochrane, the CMA's Executive Director for Consumer Protection,
said in the statement.
The probe comes less than a week after Adobe reached a $150
million settlement to resolve a U.S. government lawsuit accusing
it of harming consumers by concealing hefty termination fees and
making it difficult to cancel subscriptions.
In its response to that order on Friday, Adobe said it has
in recent years streamlined its sign-up and cancellation
processes and made them more transparent.
The company did not immediately reply to a Reuters request
for comment on the British regulatory action.
At this stage, the British watchdog has reached no
conclusions about whether Adobe has broken the law, it noted in
its statement, adding that Adobe was the ninth business it was
investigating using its new direct consumer enforcement powers.
The powers allow the CMA to determine whether consumer law
has been breached - rather than going through the courts - and
take action where wrongdoing is found, including securing
consumer redress and imposing fines on companies where
appropriate.