Adobe, which spent 20 billion dollars to purchase Figma but canceled this purchase at the last minute, shared the reasons for the cancellation decision.
In the past months Adobe, 20 billion dollars had knocked on Figma’s door with an acquisition offer. figma He also accepted this offer. Even contracts were signed between the two companies. During the review process of the agreement in the European Union and United Kingdom commissions, the two companies announced that they mutually canceled the agreement. Details of this cancellation decision were eventually shared.
Adobe despairs of regulators
The agreement between Adobe and Figma Europe union as well as United Kingdom It had mobilized regulatory agencies. Both institutions found the agreement to be anti-competitive. In its statement, the European Commission stated that the agreement “will significantly reduce competition in global markets” he said. A week later, the UK Competition and Markets Authority blocked the deal. Adobe consultant speaking on a podcast Dana Raothen explained the process that led to the cancellation of the agreement between the two companies.
While Rao claims that the two companies are not currently in competition, their only applications that can be considered a rival to Figma are Adobe XD since the beginning of this year “he was on life support” told. Rao said that they tried their luck with their tool, but the tool failed, and added that according to Adobe, there is no overlap between the customers of the two companies. Rao also “nothing about the deal from competitors or consumers.” no complaints“ he added.
It’s a good time to give up
When it comes to competition boards, Rao says regulators need to adapt to new doctrines.“too focused” He said they were. Here Rao, in his antitrust analysis Competition has an important role in the future He pointed out the stated approach. Adobe manager said that they came together with Figma following the statements from the institutions and said, ““Given the path ahead, the timing and the tone of the discussions, we thought it was a good time to stop.” said.
Why is Adobe against these decisions like other companies? not fighting When asked, Rao said that they understand what can and cannot convince institutions and that it is important for both sides to continue the fight. that it is meaningless He said he understood. Rao stated that the essence of what they were told was that the only thing one could do to solve the problem of future competition was not to make a deal.
Adobe will pay Figma $1 billion after withdrawing from the agreement.
Source :
https://www.theverge.com/2023/12/20/24008189/adobe-figma-deal-eu-explained-decoder