Following mounting pressure from regulators in the UK and EU, Adobe and Figma announced on Monday that both companies are mutually terminating their merger agreement, which would have seen Adobe acquire the Figma product design platform for $20 billion.
As a result of the termination, Adobe will be required to pay Figma a reverse termination fee of $1 billion in cash.
It’s a Christmas miracle! The competition in the field of creative/graphic design software is horrendous, so this is definitely good news if you’re a creative. The last time I wrote about this merger, I had a feeling the deal was going to be torn apart. Theoretically, this news means lower prices and more innovation down the road as Adobe and Figma compete for customers. This is also yet another sign that the United States has largely abdicated its regulatory authority to the European Commission.