EU competition head, Margrethe Vestager, stated that the acquisition would have ended competition between the two companies, leading to higher prices and less choice for customers. Adobe's general counsel, Dana Rao, had previously stated that the company had all but dismantled the XD team and was fully committed to having Figma fill that product need. With the deal off, Adobe may consider acquiring another collaboration startup such as Miro, WebFlow or InVision.
Key takeaways:
- Adobe and Figma have ended their $20 billion acquisition deal due to regulatory roadblocks, with Figma receiving a $1 billion consolation prize.
- Adobe had hoped to strengthen its position in the collaborative design market with the acquisition, but will now have to rely on its own design collaboration tool, XD.
- EU’s competition head, Margrethe Vestager, stated that the proposed acquisition would have eliminated competition between the two companies, leading to higher prices and less choice for customers.
- Despite the setback, Adobe could potentially acquire another collaboration startup, while Figma continues to grow independently, having hired 500 people since September 2022 and developed new capabilities.