
Published Date: December 18, 2023 10:09 AM Updated Date: December 18, 2023 10:09 AM

Correction and fact check date: December 18, 2023, 10:09 AM
briefly
Adobe announced it was closing its $20 billion Figma deal due to regulatory approval hurdles that impeded the cash and inventory deal.

Computer software company Adobe Systems Incorporated announced that it has closed a $20 billion cash-and-stock deal for cloud-based designer platform Figma.
In an official statement, the two companies explained that there is no clear path to obtain the necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.
The deal, disclosed in September of the previous year, faced intense scrutiny from regulators concerned about acquisitions of companies that could strengthen the market power of a dominant company or involve startups perceived as emerging competitors.
As part of the closing, Adobe will pay a $1 billion installment fee to Figma, as specified in regulatory filings.
The UK’s competition watchdog announced that Adobe would not be proposing relief measures to resolve regulatory issues related to the acquisition. Adobe has insisted that it does not compete with Figma in any meaningful way.
The only product involved in the company’s antitrust questions was its Adobe XD design tool. The tool has been operating as a standalone app for the past three years, losing $25 million and employing just five full-time employees.
“While Adobe and Figma strongly disagree with the findings of the recent regulatory investigation, we believe it is in each other’s best interests to move forward independently.”
Adobe CEO Shantanu Narayen said in a written statement.
Antitrust regulators step up scrutiny of big tech companies
The announcement was unexpected, considering Adobe CEO Shantanu Narayen announced last week the company’s continued belief in the acquisition and its potential benefits for consumers.
Antitrust regulators are increasingly scrutinizing a variety of technology deals, both significant and minor.
In May, following concerns from the UK’s competition watchdog about potential anti-competitive effects, Meta sold Giphy to photography marketplace Shutterstock for $53 million, three years after it was first acquired. The Competition and Markets Authority (CMA) has also been reviewing Microsoft’s investment in OpenAI.
Recent developments by Adobe and Figma indicate a growing trend in the industry, with increased scrutiny from antitrust regulators on technology companies.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson

Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.