Adobe has walked away from its proposed $20 billion purchase of design startup Figma, citing insurmountable regulatory hurdles. The deal faced intense scrutiny from EU and UK antitrust authorities concerned that the merger would stifle competition.
After months of back-and-forth, Adobe declined to offer concessions that would appease regulators. In a joint statement, the companies said they “strongly disagree with the recent regulatory findings” but that it’s best to “move forward independently.”
The collapsed acquisition highlights the increased willingness of global competition watchdogs to block Big Tech deals they deem anti-competitive. deals. Both the EU and UK published objections arguing the merger would reduce choices and raise prices by eliminating rivalry.
Figma CEO Dylan Field expressed disappointment at the outcome after initial optimism the challengers could be overcome. The $20 billion price tag would have netted a major payout for Figma investors while giving Adobe control over its fastest-growing upstart rival in the design software space.
With the market downturn closing IPO windows, Field had argued that lucrative buyouts remain “important paths” for startups lacking public offering options. But regulators made clear that acquisition by dominant players like Adobe remains difficult, especially when competition concerns arise.
For Adobe, moving on from Figma will refocus energy on its in-house R&D and product roadmap. The company has already invested significantly into embedding generative AI capabilities across its creative suite. Streamlining those efforts without a complex integration process may ultimately prove beneficial.
Ultimately, the collapsed merger highlights intensifying regulatory scrutiny over Big Tech expansion, signaling deals perceived as limiting competition will face high barriers regardless of price tag. For Figma, its independent trajectory is firmly reinforced as the company continues gaining share from giants like Adobe.
tl;dr:
- Adobe abandons proposed $20B acquisition of rival Figma after antitrust objections
- EU and UK regulators argued merger would reduce competition and raise prices
- Figma CEO expressed disappointment but independence firmly reinforced
- Outcome highlights intensified scrutiny over Big Tech deals limiting competition
- Adobe can refocus on in-house innovation like integrating generative AI features