Adobe cancels $20 billion deal with Figma due to regulatory obstacles

Adobe is abandoning a $20 billion deal with Figma due to regulatory obstacles, reports Reuters.

Adobe explained this decision by the “lack of a clear path” for obtaining approvals from antitrust regulators in the European Union and the United Kingdom.

“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 on Monday.

Adobe announced its intentions to acquire Figma last September. Initially, the parties discussed the deal at a price of $15 billion, but later the official price increased to $20 billion.

In November of this year, Adobe received an official antitrust complaint from EU regulators regarding the possible acquisition of Figma. According to local officials, the deal could harm competition.

Not just the EU had questions about the agreement. The UK’s Competition and Markets Authority (CMA) has also expressed concern about a potential deal between Adobe and Figma.

According to the British regulator, the possible acquisition could harm innovation in the software used by the vast majority of British digital designers.

Subsequently, the British competition authority said that Adobe would not offer remedies to resolve regulatory issues related to the deal.