Adobe says it has abandoned its $20bn (£15.8bn) merger with designer platform Figma amid opposition from European regulators.

The UK’s Competition and Markets Authority (CMA) had revealed earlier in the day that Adobe, best-known for its Photoshop editing software, would not propose remedies to resolve its concerns over the buyout.

The watchdog’s European Union counterpart had similar worries.

The deal, which was announced in September last year, was the latest to draw tough scrutiny from regulators worried over big tech acquisitions that boost dominant companies’ market power.

For its part, the CMA had provisionally found that the deal could harm the product design software market.

Adobe had argued that it does not compete with Figma in any meaningful way.

It said the only product relevant to the inquiry was the Adobe XD design tool, a loss-making app that employed only five people.

Be the first to get Breaking News

Install the Sky News app for free

Adobe chief executive Shantanu Narayen said: “Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently.

A termination fee of $1bn is payable to Figma by Adobe.

Read more from Sky News:
BP joins firms in pausing shipments through Red Sea
Boots expected to launch ‘AI personal shopper’

Its share price, however, did recover some value.

The tussle with Adobe marked another high profile intervention by the CMA, which recently U-turned on its opposition to Microsoft’s takeover of Activision Blizzard after the US tech firm offered new remedies to offset its concerns.

The deal had been seen as a bet on “the future of work” but had sparked investor concerns, particularly over the price tag.

Adobe’s market value took a $30bn hit when the planned tie-up was first announced.

Related posts:

Alibaba fires manager over claims he sexually assaulted employee ‘Britcoin’: There isn’t a ‘convincing case’ for a digital currency in the UK, House of Lords committee says Tesco hails Christmas sales growth ‘despite growing cost pressures and supply chain challenges’ HSBC suspends senior banker for dismissing ‘nut job’ climate change warnings Wage growth at fastest rate in 20 years, though failing to keep up with inflation Train drivers’ union rejects pay offer and members will go ahead with fresh strike action Britishvolt collapse should spark debate on whether it was actually needed Royal Mail could face fine as Ofcom investigates missed targets Greggs wins battle to sell late-night sausage rolls in London’s Leicester Square Heathrow strikes next weekend postponed Wage growth is good news for workers – but not necessarily the economy Why the end to interest rate hikes is now in sight