Adobe will no longer be purchasing the product design platform Figma. The companies announced that they have come to a “mutual agreement” to terminate their plans to merge after UK and EU regulators ruled that the deal would harm competition in the design software industry and prevent future innovation.
Adobe has its own design software, though Figma’s is more popular. Regulators noted that the acquisition may put a halt to Figma’s innovations in the space down the line. The UK’s Competition and Markets Authority (CMA) suggested antitrust remedies, which included divesting certain assets and codes to reduce competition. Adobe turned down those ideas last week, arguing that its software isn’t in direct competition with Figma.
In a news post, companies said that based on their “joint assessment” of the pushback from regulators, there’s “no clear path to receive necessary regulatory approvals.”
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” Adobe CEO Shantanu Narayen said in a statement. “While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalize on our massive market opportunity and mission to change the world through personalized digital experiences.”
The merger had originally been announced in September 2022 with the buyout consisting of a mix of cash and stock totaling $20 billion USD. As part of the deal’s fallout, Adobe will be required to pay Figma a $1 billion USD termination fee.
