Adobe cancels Figma acquisition after competitive hurdles arise

Adobe encountered CMA obstacle in Figma acquisition


One of the largest software companies in the world Adobe, It announced that it acquired Figma in 2022.

However, this acquisition was officially announced today. was announced It won’t happen as far as. As a result of this situation, it is reported that Adobe will pay a termination fee of $1 billion in cash to Figma. “With the great financial power it has, it is on its way to becoming a great monopoly in the design world.” is one of the names in which the phrase “” is frequently used. Adobe, made a big impact with its acquisition of the common design platform Figma. In that case The company signed a 20 billion dollar agreement. Even though he waited for a long time to purchase Figma, he could not fully complete it. Because the Competition and Markets Authority (CMA) in the UK, announced a decision stating that this acquisition would harm the market and consumers. The institution, which reached a temporary decision on this issue, put a major obstacle in Adobe’s complete completion of the acquisition. The review by the CMA revealed that around 80 per cent of the professional design market in the UK used Figma, and it was felt that the deal would clearly harm innovation in the field.

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In this regard, CMA stated that the acquisition of Figma will eliminate competition between the two main players in the design software space and thus would reduce innovation and the development of competitive new products. Speaking about the canceled agreement, Adobe Chairman and CEO Shantanu Narayen said: “Neither company strongly disagrees with the findings of the authorities, but we have decided that it is in our best interests to proceed independently.” said.

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