Adobe decided abandon its planned $20 billion acquisition of Figma after the companies concluded there was no clear path to approval from UK and European Union regulators. Both parties have signed an agreement that will fully resolve all aspects of the termination of the Adobe-Figma merger deal. Adobe will pay the platform a $1 billion fine for breaking a deal after it failed to overcome regulatory hurdles.
In November, the UK Competition and Markets Authority (CMA) and the European Commission raised concerns about the impact of the proposed acquisition on competition. The CMA said in its preliminary findings that the merger would “eliminate competition between the two main players in the market”. The watchdog said it was considering either blocking the deal or requiring Adobe to sell Figma’s core product, called Figma Design, along with Adobe XD.
Earlier on Monday, Adobe said it would not offer any potential remedies to the CMA.
It is clear that no realistic remedy will address the concerns espoused by the CMA. We believe that the best way forward is to continue our ongoing engagement with the CMA on the merits of the issue.
Last month, the European Commission issued a Statement of Objections to Adobe, warning the company that its planned acquisition of Figma “could reduce competition in global markets for the supply of collaborative product development software and other creative software” such as vector editors (Illustrator) and tools raster graphics like Photoshop. The European Commission planned to make a final decision on the merger by February 5. Adobe had indicated it was willing to offer possible remedies to appease European regulators, but that appears to no longer be the case.
Adobe and Figma strongly disagree with the latest regulatory findings, but we believe it is in our best interests to move forward independently. While Adobe and Figma shared a vision to jointly reimagine the future of creativity and productivity, we remain well positioned to take advantage of our enormous market potential and mission to change the world through personalized digital experiences.”
Adobe also anticipated a potential lawsuit from the US Department of Justice in an attempt to block the deal in the US. The company and Figma reportedly met with Justice Department officials last week to try to get approval for the merger.
Figma users can exhale.
2023-12-19 07:20:00
#Adobe #backs #billion #purchase #Figma
