Adobe explains why the acquisition deal with Figma was canceled. This shows that the European Commission was not wrong in its negative assessment.

Adobe and Figma abandoned their takeover plans a few days ago. Adobe wanted to buy Figma and was willing to pay twenty billion dollars for it. However, British and EU regulators were not happy with the plans. In a preliminary statement, the EU said it did not like the takeover, and a month later Adobe and Figma abandoned the plans.

Both said they disagreed with the regulator’s assessment, although an interview with Adobe now shows regulators assessed the situation correctly. Adobe’s lawyer told The Verge that the company could not prove to the EU that the acquisition would not negatively affect competition in the market. This is, of course, the core of the entire antitrust case. The EU feared that Figma and Adobe were actually operating in each other’s waters, increasing competition. Both sides denied but could not substantiate their own claims.

Future competition

The focus of the research was on future competition. Although the two sides do not currently have strongly overlapping offers, the EU feared the takeover would ensure such a thing would never happen. Adobe XD, for example, was sent to its grave in the run-up to the deal. This product was Adobe’s most relevant alternative to Figma. Adobe claimed it had tried and failed with XD, but the EU saw it as an example that the acquisition would stifle such innovation in the market.

According to the lawyer, Figma and Adobe examined their options, but it seemed that regulators were not interested in further arguments other than canceling the deal.