Figma and Adobe originally planned to merge, but after 15 months of regulatory review, they announced today (December 18) that they have abandoned this plan.

Figma's co-founder, Dylan Field, said in a statement on the website that they have provided detailed explanations of their business, products, and market differences to regulatory agencies around the world, but they still could not obtain regulatory approval, which has left them disappointed.

Adobe, in another statement, said that they saw the advantages of the merger, but they believe that the European Commission and the UK Competition and Markets Authority will not approve the deal. Bloomberg also reported that the United States will begin reviewing the transaction.

Adobe's CEO, Shantanu Narayen, said that both they and Figma oppose the recent regulatory findings, but they believe that moving forward independently is the best choice. "We and Figma share a common vision of redefining the future of creativity and productivity, but we also have our own market opportunities and mission to change the world through personalized digital experiences."

Due to the termination of the merger, Adobe will pay Figma a reverse termination fee of $1 billion. Adobe's statement also acknowledges this and states that they have signed an agreement with Figma to resolve all issues in the transaction, including the payment of the termination fee.