Adobe Comes Under U.K. Antitrust Investigation Over Cancellation Fees — Update

By Mauro Orru

U.K. antitrust officials launched an investigation into Adobe, saying early cancellation fees on membership plans for certain products might be in breach of consumer-protection law.

The Competition and Markets Authority said customers who cancel more than 14 days after signing up to Adobe's annual plan--billed monthly--must pay 50% of the remaining yearly cost, but will have access to the product only until the end of that month's billing period.

Officials said the probe would look into whether Adobe's terms are unfair and if customers are given clear information upfront about the early cancellation fees, noting that the CMA hadn't yet reached any conclusion on whether the company had broken the law.

Adobe distributes apps like Photoshop, Illustrator and Adobe Premiere that customers can sign up to individually or through a bundle. In the U.K., the company currently offers an annual plan for a single app that charges customers a monthly fee.

However, its website also has an option for Creative Cloud Pro, an annual membership plan that charges users a monthly fee to access several apps for design, photography, video and web.

"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, executive director for consumer protection at the CMA, said.

Officials said they were conducting the investigation under new direct consumer enforcement powers, which allow the CMA to fine companies up to 10% of their global revenue if they are found to be in breach of the rules.

Adobe didn't respond to a request for comment.

The U.K. probe comes days after Adobe said it had finalized a settlement agreement with the U.S. Department of Justice to end litigation related to the company's disclosure and subscription-cancellation practices.

A 2024 federal complaint alleged that Adobe pushed consumers toward annual monthly subscriptions without adequately disclosing that canceling the plan in the first year could cost hundreds of dollars.

Adobe said last week that while it disagreed with the U.S. government's claims and denied any wrongdoing, it had agreed to provide $75 million worth of services for free to customers that qualify. It also agreed to a $75 million payment to the Department of Justice.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

March 19, 2026 09:07 ET (13:07 GMT)