Adobe has abandoned its plans for a $20 billion takeover of the design software company Figma after pressure from regulators in the U.K. and EU, according to a statement released Monday.

The mutual decision between the two companies to scrap its merger agreement comes amid a flurry of scrutiny from antitrust regulators over deals between tech companies. In November, the U.K.’s Competition and Markets Authority (CMA) said that Adobe’s bid to acquire Figma would cause harm to the digital design sector. Earlier this month, Adobe rejected the CMA’s suggested remedies that might have allowed the deal to go forward.

The European Commission was similarly probing Adobe’s push for Figma but dropped its antitrust investigation after Adobe’s announcement today.

“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” Shantanu Narayen, chair and CEO of Adobe, said in a statement.

Over the past year, regulators have grown increasingly wary of deals seen as anticompetitive in the tech sector and beyond. The U.S. Department of Justice’s antitrust suit over Google’s search engine dominance has been capturing headlines recently, and earlier this year Meta unloaded Giphy to Shutterstock for $53 million—just 20% of what the Facebook parent company originally paid for the photo platform—after a ruling from the U.K.’s CMA.

Had the takeover of Figma been successful, Adobe would have had control over the company’s fast-growing collection of collaborative design software, a move regulators saw as curtailing competition to Adobe’s Photoshop, Illustrator, and XD products––all applications that target the product design, image editing, and digital illustration market.

In the aftermath of the scrapped plan, Adobe will now have to pay Figma a $1 billion breakup fee.

“While we’re disappointed in the outcome, I am deeply grateful to everyone who has contributed to this effort and excited to find other ways to innovate on behalf of our respective communities with Adobe,” Dylan Field, cofounder and CEO of Figma, wrote in the joint statement with Adobe.