Adobe Ends $20 Billion Deal to Buy Figma

Adobe's ambitious plan to acquire Figma, valued at $20 billion, has been shelved. The decision comes in the wake of considerable regulatory hurdles in Europe, leading the two companies to jointly conclude that gaining approval from the European Commission and the U.K. Competition and Markets Authority was unlikely. The proposal, first revealed in September of the previous year, was bound to draw close examination due to its magnitude and the fact that it would have significantly reduced competition by eliminating one of Adobe's key competitors. Throughout 2023, the U.S. Department of Justice scrutinized the deal, though it hadn't yet launched a formal lawsuit to obstruct it. However, just before the weekend, it was reported that Adobe and Figma were discussing with the DOJ to possibly avoid legal challenges. Regardless of these discussions, the firms were already encountering strong opposition in Europe. In late November, the U.K. deduced that the acquisition could stifle innovation, prompting an extensive probe by its competition authority. This followed a similar move by the European Union in August. Ultimately, this international regulatory resistance led to the cancellation of the acquisition.