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Competition watchdog cracks knuckles, probes legality of Adobe cancellation fee

(2026/03/19)


Britain’s competition watchdog is opening an investigation into Adobe’s early cancellation fees on membership plans to ascertain if it breaks consumer law.

Under its terms, Adobe says customers that cancelled its "annual billed monthly" subscription after more than two weeks are subject to a cancellation fee equating to 50 percent of the yearly cost. After they end the plan, the user only has access to the software until the close of that month’s billing period.

The Competition and Markets Authority says it will examine if these terms are unfair and whether customers get "clear and timely information upfront" about that could influence their buying behavior.

[1]

"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," [2]said Emma Cochrane , Executive Director for Consumer Protection at the CMA.

[3]

[4]

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

The CMA probe comes hot on the heels of [5]Adobe's $75 million settlement with the US DoJ to resolve allegations over hidden cancellation fees. The company, which denied wrongdoing, must also provide some customers with around $75 million in free services to resolve accusations its subscription practices violated the US's Restore Online Shoppers' Confidence Act.

[6]

Back in the UK, Adobe is the ninth business to be probed under the direct consumer enforcement powers, allowing the British watchdog to rule on breaches of the law rather than going to court. The CMA can impose fine on corporations of up to ten percent of global turnover, and it can also penalize businesses for concealing evidence or providing false information.

The CMA says it has "reached no conclusions about whether Adobe has broken the law."

[7]Prince of PDFs, Adobe CEO Shantanu Narayen, to step down after 18 years

[8]Figma debuts on Wall Street at $33 per share – then more than triples

[9]Adobe turns subscription screw again, telling users to pay up or downgrade

[10]Photoshop FOSS alternative GIMP wakes up from 7-year coma with version 3.0

[11]Adobe fixed Acrobat bug, neglected to mention whole zero-day exploit thing

The digital design sector is worth almost £60 billion, or roughly 2.7 percent of the UK economy. The sector expanded 138 percent in the nine years to 2019, making it the largest and fastest growing segment of the design industry.

Adobe, via its Photoshop, Illustrator, and Adobe Premiere products, has a tight grip on the market globally, reporting $23.78 billion revenue and $7.1 billion net profit in the [12]financial year ended November 28, 2025 [PDF].

The last time the CMA came into contact with Adobe, the regulator [13]ruled against the $20 billion acquisition of web-first design collaboration startup Figma , saying if passed it would harm software developers. Adobe decided to withdraw the bid.

[14]

In addition to the annual billed monthly plan, [15]Adobe's Ts&Cs also confirm that the annual prepaid plan payment in non-refundable after 14 days. Users have complained about this before ( [16]here and [17]here ), proposing some workarounds. This involves choosing the option to change to another plan and then cancelling that inside 14 days.

Or, as others suggest, choose another vendor.

The Register asked Adobe to comment.

Get our [18]Tech Resources



[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2abwrtftJuxFRLJ3kDhdEZwAAAg8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://www.gov.uk/government/news/cma-investigates-adobe-over-concerns-about-cancellation-fees

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44abwrtftJuxFRLJ3kDhdEZwAAAg8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33abwrtftJuxFRLJ3kDhdEZwAAAg8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[5] https://www.justice.gov/opa/pr/adobe-agrees-150-million-settlement-and-injunction-resolve-alleged-violations-restore-online

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44abwrtftJuxFRLJ3kDhdEZwAAAg8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://www.theregister.com/2026/03/13/adobe_q1_2026/

[8] https://www.theregister.com/2025/07/31/ipo_figma/

[9] https://www.theregister.com/2025/05/20/adobe_price_hikes/

[10] https://www.theregister.com/2025/03/20/gimp_3_and_photogimp/

[11] https://www.theregister.com/2024/09/12/adobe_acrobat_0day/

[12] https://www.adobe.com/cc-shared/assets/investor-relations/pdfs/01215202/a54gu6y5tegrrf.pdf

[13] https://www.theregister.com/2023/11/29/adobes_buy_of_figma_is/

[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33abwrtftJuxFRLJ3kDhdEZwAAAg8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[15] https://helpx.adobe.com/uk/manage-account/using/creative-cloud-subscription-terms.html

[16] https://www.reddit.com/r/Adobe/comments/1ff6d1g/cancellation_fee/

[17] https://www.reddit.com/r/Adobe/comments/1j32xz6/canceling_fee_is_extortionate_why/

[18] https://whitepapers.theregister.com/



The Central Scrutinizer

I was happy to use Lightroom way back when I bought a so called perpetual license for it. Then they started the subscription garbage. Not for me thank you very much.

They just seem to have degenerated into a company that keeps infinitely gouging their victims, (sorry, customers)!

Charlie Clark

Fortunately, there are still a few paid and free alternatives: Serif deserves credit for the Affinity series, which is now free, but I've been using Photoline32 happily for years.

Bullshit and greed

TonyJ

IF it is clearly in the contract that's one thing

But also IF I am going to be charged 50% of the remaining subscription then I better well GET 50% of the remaining subscription. Otherwise this smells strongly of fraud - pay for a service you don't actually get...

However, as an aside, this is why avoiding subscription-based software is the best approach where possible.

It's driven purely by greed.

Re: Bullshit and greed

TVU

I fully agree with you about the commercial greed aspect plus it generates customer ill will. You used to be able to get perpetual licences for the cut down Photoshop Elements but now it's only a three year licence and then the software stops working.

The free Canva Affinity range can be combined with, for example, a Lightroom equivalent that offers a perpetual licence, eg Exposure 7.

Seems like

retiredFool

Adobe is somehow equating a physical thing like a phone to software. Problem is a phone did cost the cellco company real money and you got the phone. So makes sense if you cancel the cellco svc agreement, you still owe for the phone. But software. Be real adobe. Thankfully I'm not a customer of the vulture co. The pity is how they dominate with pdf format. I'm glad pdf is reverse engineered enough that I can use open source tools to read the files.

Re: Seems like

joeldillon

'Thankfully I'm not a customer of the vulture co' - err you are posting on here and I'm pretty sure this is run by a commercial entity...

(Relatedly, how has it taken me 15 YEARS to realise 'the register' is a pun)

Thankfully...

The Bobster

we have the EU Unfair Contract Terms Directive to curb such "significant imbalance(s) in the parties’ rights and obligations to the detriment of the consumer."

Re: Thankfully...

Anonymous Coward

I almost feel sorry for the Americans who will continue to get rinsed by Adobe. Can't see their government standing up for consumers in the same way.

Re: Thankfully...

M.V. Lipvig

We just stop using them in perpetuity. Well, we smarter ones anyway. I for example was ripped off by Ford in 1993. Bought a new car with a bad trans and they refused to fix under warranty. I've bought several new cars since, and not one came from a Ford lot. I've also successfully talked half a dozen other people out of buying Fords. Icing on the cake - back when Ford was paying dividends I invested money, took dividends and got the money I paid them for the car back from their profits.

Re: Thankfully...

I could be a dog really

That seems to be something too many business people seem to have forgotten - it can take years to build a positive reputation, and these days just minutes to destroy it. Pee off a customer, and they tell their friends about it, and your reputation can be trashed at the speed of social media.

Of course, the only reason some of them don't actually care is that they have sufficient market power that they really don't care how peed off their victims are - if you are in the creative business, then in practical terms you have to be able to handle the files clients bring you, and in practice that means running the same software, and that means you are stuck paying whatever Adobe decides you can be fleeced for this month. Going back "a few years", Quark had an "annoying feature" in XPress - when a new version came out, they also updated the file format, and didn't offer a "save in older version" option. So if you had v3.3, it would automatically update any file you opened to v3.3 format - and there was no way to save in (say) v3.2. So that forced people to upgrade whether they wanted to or not - if you don't update, you can't open files your clients send you; if you do upgrade, any clients who don't can't open any files you work on for them.

And MS don't care what customers think, thanks to some shrewd moves, and many illegal ones*, they've engineered a situation where it's "very difficult" to not use the full MS stack in a business of any size**.

* A proved in court

** Yes, a small business can use alternatives, but for large businesses, it's really hard to put together the full stack without using 365, and 365 is deliberately designed to make swapping out any components more or less impossible.

fees on membership plans

heyrick

Thanks, but that's all I would need to know in order to walk away. I come from a time when you bought a bit of software, it came on a tangible spinny thing, and it was "yours" in that you could dump it onto your machine and it would do its job and that was about as complicated as it usually got (though some companies did mess around with dongles and weird copy protection).

Now? Subscription up front costs are much cheaper than the product ever cost, but they are recurring so it'll add up to more. And, of course, the more you use the software, the more your data and creations will be held hostage to the necessity to keep on subscribing.

So, now, it seems that Adobe don't only want to take away your use of the software, and potentially the ability to access your data maintained with it, they also want to charge you a ransom while having no obligation to provide the service that such money would have paid for.

As my mother would have said: they can go and sit on a bayonet and rotate.

Re: fees on membership plans

The Central Scrutinizer

And that "creative cloud" bullshit. No, I'll edit my photos on my own hardware ty very fucking much.

Re: fees on membership plans

heyrick

This sort of thing was a problem in France with recurring subscriptions, often things like magazines or medical top up etc.

Now (and since around 2019ish), after one calendar year you can cancel with a simple demand (no jumping through hoops), at any time (and not within a tiny window around the annual renewal time), and without penalty or charges. The only thing you will have to pay is "until the end of the calendar month" (though some magazine subscriptions push this by saying it'll take 28 days to deal with the request). At any rate, it's much better now than all the weird ways companies tried to take advantage of customers.

Re: fees on membership plans

TonyJ

It used to be a massive problem in the UK, back in the day with things like wine, magazine or music (tape/CD etc) "clubs".

It's classic dark patterns - make it as difficult to cancel as possible - you have a limited window, have to write in to a specific address using specific words, have to send back what was previously sent to you but would cost an arm and a leg. etc etc.

I don't know if gyms are still guilty of it, but they used to use tactics such as having to visit a specific gym on a specific day and time to speak to the only person who could approve the cancellation that you had to also bring in writing. Not their problem if said person wasn't there when you tried etc.

For online subscriptions where there is nothing tangible exchanging hands, this sort of thing should be illegal.

My own other pet hate is booking sites that charge a "booking fee" despite it being done online and no physical tickets changing hands. Also should be utterly illegal.

Re: fees on membership plans

mhoulden

With some gym subscriptions it was even worse. Ashbourne Management runs membership services on behalf of some gyms and used to have contracts that tied you in for possibly several years. They would report you to a credit reference agency if you tried to cancel in a way that they didn't like. In 2011 the old OFT investigated and took them to court where it was found some of the contract terms were illegal. There's a Q&A at [1]https://webarchive.nationalarchives.gov.uk/ukgwa/20140402175100/http://oft.gov.uk/OFTwork/consumer-enforcement/consumer-enforcement-completed/ashbourne/ams-qanda .

[1] https://webarchive.nationalarchives.gov.uk/ukgwa/20140402175100/http://oft.gov.uk/OFTwork/consumer-enforcement/consumer-enforcement-completed/ashbourne/ams-qanda

The penalty is provide...

M.V. Lipvig

... free services to people who decided they don't want those services? No, this is a penalty that penalizes nothing. Require a cash refund.

The problem for us IT bods

Anonymous Coward

is that the (alleged) creative types that use Adobe really won't work with anything else as it isn't cv-friendly.

My last place had 3 people in marketing who accounted for nearly all the paid for software budget because they had to "have Adobe". Despite better FOSS versions for their tasks.

Re: The problem for us IT bods

Doctor Syntax

Move it their budget, not IT's. If the employers start stamping down on this Adobe won't be CV-friendly, possibly just the opposite.

Anonymous Coward

Abandoned Adobe years ago. No loss.

Doctor Syntax

"Or, as others suggest, choose another vendor."

Or use FOSS, no vendor at all, in the strict meaning of the word.

All possibility of understanding is rooted in the ability to say no.
-- Susan Sontag