US software giant Adobe has to abandon its plans to acquire the website design platform Figma due to concerns from competition authorities. According to Adobe, both sides have agreed to terminate the acquisition agreement. The path to obtaining the necessary approvals from the European Commission and the UK's competition authority, CMA, was not clear. Due to the failed deal, Adobe now has to pay Figma one billion dollars.

Originally, the companies had agreed on a takeover price of 20 billion dollars in September 2022. The European Commission initiated a thorough examination of the planned acquisition in August and expressed concerns that the merger could impact the global market for interactive product design software and digital resources. In November, the British Competition and Markets Authority (CMA) also issued a preliminary decision prohibiting the proposal.

The start-up Figma, founded in 2012, specializes in collaborative software tools for web design. Its clients include well-known tech companies such as Airbnb, Google, Spotify, and Netflix. In NASDAQ trading, the Adobe stock was able to increase by 2.47 percent to 598.31 US dollars due to the news.

The failed acquisition is a major setback for Adobe, which had hoped to gain an advantage in the field of web design platforms with the purchase of Figma. This decision is also a disappointment for Figma, as the company now has to forgo potential revenues of one billion dollars.

The decision sends a strong signal to the EU Commission and the CMA regarding the regulation of mergers and acquisitions in the technology sector. The competition authorities want to prevent a single company from gaining too much power in a specific market, thereby limiting competition.

Despite the burst deal, Figma remains a rising company situated in a promising market. However, the decision of competition regulators will certainly have implications on future acquisition plans in the technology sector and demonstrates that authorities continue to remain vigilant in ensuring healthy competition. The outcome of this planned acquisition will draw the attention of the entire industry and future developments will be closely monitored.