Adobe and Figma Terminate $20 Billion Deal After Regulator Clash

Adobe Inc. walked away from its $20 billion acquisition of startup Figma Inc. after clashing with regulators in Europe and the UK.

Adobe will pay Figma a $1 billion termination fee, the companies said in a statement Monday. They saw “no clear path” to getting regulatory approvals from the European Commission and the UK’s Competition and Markets Authority.

Adobe, the dominant force for years in such creative software as Photoshop and Illustrator, announced the purchase of Figma in September 2022.

The acquisition, which would have been one of the largest takeovers ever of a private software maker, was a massive ...