Adobe has terminated its £16billion takeover of design platform Figma after clashing with regulators in Britain and Europe.
The companies said there was ‘no clear path’ to get approval from the Competition and Markets Authority (CMA) and the European Commission.
Photoshop-owner Adobe will pay Figma a termination fee of almost £800million.
The deal, which was announced in September last year, was the latest to face tough scrutiny from regulators worried that Big Tech buy start-ups seen as potential rivals to boost their market power.
Adobe had argued it does not compete with Figma in any meaningful way.
No deal: Adobe’s San Francisco headquarters (pictured). The software firm has terminated its £16bn takeover of designer platform Figma
But the CMA said combining the two companies would threaten competition in product design, image editing and illustration.
‘Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,’ said Adobe chief executive Shantanu Narayen.
The deal was seen as a bet on ‘the future of work’ but sparked investor concerns over the rich price tag and wiped out more than £23billion in Adobe’s market value when it was announced.
It is not the first time the CMA has ruffled feathers.
Earlier this year it blocked Microsoft’s £60billion takeover of Call Of Duty maker Activision Blizzard, forcing the US giants to revise the terms of the deal before approving it.
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