In the past months Adobe, 20 billion dollars had approached Figma with a takeover offer. figma He also accepted this offer. Contracts were even signed between the two companies. During the review process of the agreement in the European Union and United Kingdom committees, the two companies announced that they had mutually terminated the agreement. Details of this cancellation decision were eventually shared.

Adobe despairs of regulators

The agreement between Adobe and Figma Europe union like United Kingdom It had mobilized regulators. Both institutions found the agreement 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 British Competition and Markets Authority blocked the deal. Adobe consultant speaks on a podcast Dana Raothen explained the process that led to the cancellation of the agreement between the two companies.

Although Rao claims that the two companies are not currently competing with each other, their only applications that could be considered rivals to Figma are AdobeXD since the beginning of this year “he was on life support” told. Rao said they tried their luck with their tool, but the tool failed, adding that according to Adobe there is no overlap between the two companies’ customers. Rao too “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 must adapt to new doctrines.“too focused” He said they were. Here Rao, in his antitrust analysis Competition plays an important role in the future He pointed out the mentioned approach. The Adobe executive said they came together with Figma following the institutions’ statements, saying: ““Given the journey ahead, the timing and the tone of the discussions, we felt it was a good time to stop.” said.

Why is Adobe, like other companies, opposed to these decisions? do not fight When asked, Rao said they understand what can and cannot convince institutions and it is important for both sides to continue the fight. that it is pointless 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 future competition problem was to make a deal.

Adobe will pay Figma $1 billion after withdrawing from the deal.