Adobe has explained why it abandoned the deal with Figma. The company was unable to prove to European regulators that the acquisition would not harm competition in the future. This was stated by Adobe General Counsel Dana Rao, according to The Verge.
According to him, the companies are not currently competing. According to Adobe, there was “no overlap” between the two companies’ customers, and there were “no complaints from competitors or customers about the deal.”
However, the problem emerged when it came to future competition. Dana Rao said that regulators were “very focused” on antitrust doctrines that “say that future competition is a critical part of antitrust analysis.”
With this in mind, the Adobe representative recalled a meeting with Figma when the companies decided on the next steps. Dana Rao said that the companies met and said that “looking at the path ahead, and the timing and tone of the conversations we’re having, now is probably a good time to stop.”
Both companies came to the conclusion that it was not worth continuing to fight for the deal.
“The only way to solve a future competition issue, that someone might do something, is to not do the deal,” said Dana Rao.
Recently, it became known that Adobe is canceling its $20 billion deal with Figma due to regulatory obstacles. At the time, Adobe explained the decision by the “lack of a clear path” for obtaining approvals from antitrust regulators in the European Union and the United Kingdom.
Adobe announced its intentions to acquire Figma last September. However, the company recently received an official antitrust complaint from EU regulators regarding the deal. The UK’s Competition and Markets Authority (CMA) has also expressed concern about the potential merger.
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