The UK Competition and Markets Authority (CMA) has launched an investigation into Adobe, concerning the US software giant’s early cancellation fees.

The investigation will centre on Adobe’s “annual contract, billed monthly” plan, where customers who cancel more than 14 days after signing up are required to pay 50% of the remaining yearly cost.

The regulator will assess whether these terms violate consumer protection laws and if customers are provided with clear and timely information about these fees before purchasing.

In its terms for Creative Cloud, Document Cloud and Acrobat, Adobe states: “You can cancel your subscription any time via your Adobe Account or by contacting Customer Support. If you cancel within 14 days of your initial order, you’ll be fully refunded. Should you cancel after 14 days, you’ll be charged a lump sum amount of 50% of your remaining contract obligation and your service will continue until the end of that month’s billing period.”

Emma Cochrane, the CMA’s executive director for consumer protection, commented on the importance of transparency and fairness in the digital design tools market, which is valued at nearly £60 billion in the UK.

“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,” she said in a statement.

“Our investigation will consider whether Adobe customers are getting a fair deal and if they have enough information upfront about the cancellation fee.”

Since 2025, the CMA has had direct consumer enforcement powers, which allow it impose fines of up to 10% of a company’s global turnover in cases where consumer law has been broken.

The Adobe investigation is the ninth time these powers have been used, and this week the regulator imposed a £473,000 penalty on Euro Car Parks after the company failed to respond to an information notice, the first fine under the new arrangement.

The CMA’s announcement of its investigation into Adobe comes days after the company settled a $150 million lawsuit by the US Department of Justice, which accused the Adobe of unfair practices over its subscription and cancellation terms. After that case had been settled, Adobe stated that in recent years it has made its “sign-up and cancellation processes even more streamlined and transparent”.