Adobe-Figma Deal Collapses After 15 Months of Regulatory Scrutiny

Figma and Adobe have officially abandoned their proposed $20 billion acquisition. In a blog post, Figma co-founder and CEO Dylan Field confirmed the two companies "no longer see a path toward regulatory approval" after a 15-month review process.

The decision marks the end of a protracted battle with regulators worldwide. Field noted that despite "thousands of hours" spent detailing the differences between the two businesses, their products, and the markets they serve, approval was not forthcoming.

What Went Wrong

The deal, first announced in September 2022, drew intense scrutiny from competition authorities in the UK and Europe. Regulators expressed concerns that the merger would eliminate a significant competitive threat to Adobe's design suite, potentially stifling innovation and raising prices for users.

Figma and Adobe had argued that their product lines were complementary rather than overlapping. Figma's multiplayer, browser-based design platform serves a different workflow than Adobe's desktop-centric Creative Cloud tools. However, this argument failed to convince regulators, who saw Figma as the most credible challenger to Adobe's dominance in the design software market.

Figma's Solo Path Forward

With the acquisition officially dead, Figma returns to operating as an independent company. Field emphasized that the 15 months of uncertainty did not slow the company down. During that period, Figma shipped a number of significant product updates, including:

  • Native AI features for FigJam
  • Dev Mode, a workspace designed specifically for developers
  • Variables and Advanced Prototyping
  • New hubs in the UK and Asia
  • The acquisition of AI startup Diagram

The company also added more than 500 new employees, or "Figmates," during the review period.

Renewed Focus

Field reiterated Figma's founding vision: to "eliminate the gap between imagination and reality." He argued that the shift from a physical to a digital economy, combined with recent advances in AI, makes this mission more relevant than ever.

Looking ahead, Figma intends to double down on its core product, making it easier for anyone to design and build digital products on a multiplayer canvas. While the merger is off, Field hinted that collaboration with Adobe may still be possible in some form, stating the companies are "excited to find ways to partner for our users."