After fifteen months of document verification by British and EU competition authorities, Figma and Adobe finally abandon merger plans. The companies no longer see a chance of reaching an agreement with regulators.
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Figma and Adobe have jointly decided to terminate the merger process in the face of mounting allegations of anti-competitive practices and striving to create a monopoly. And although both companies still officially believe in the validity of the merger, the boards agreed to terminate the transaction based on a joint assessment that there is no clear path to obtaining the necessary approvals from the European Commission and the UK Competition and Markets Authority (CMA).
"Adobe and Figma companies strongly disagree with the recent findings of regulatory bodies, however, we believe that it is in our best interest to operate independently" - said in a press statement Shantanu Narayen, CEO of Adobe.
"This is not the outcome we were hoping for, but despite thousands of hours spent on consultations and discussions with regulatory bodies around the world [...] we no longer see a path to approval of this transaction - added Dylan Field, co-founder and CEO of Figma.
Both the European Commission and the CMA have expressed strong concerns over the past few months that the $20 billion merger of Adobe and Figma will cause harm in the digital computer design market sector, eliminate competitiveness and limit innovation. At the same time, Adobe strongly opposed the recommendations of the bodies, which were pressing for the sale of the flagship Figma Design program - probably the main driving force of the entire transaction.
One of Adobe's key arguments was that rejecting the merger could limit innovation and prevent smaller companies from flourishing under the wings of larger corporations. Neither the EC nor the CMA, however, accepted these explanations as valid.
The final decision to dissolve the merger agreement was made at the end of December 2023. Adobe and Figma also signed an agreement under which all details of the transaction are regulated, and the companies communicate their decision to continue their previous activities separately.
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