Jonathan Kanter on Figma's IPO and Trump Antitrust: "You're Welcome"

Former DOJ antitrust chief Jonathan Kanter says the collapse of Adobe's $20 billion acquisition of Figma and the company's subsequent IPO, worth $44 billion, vindicates the Justice Department's and FTC's robust antitrust approach. Kanter sees Figma's success as a public company as proof that their approach protects not just end consumers but other players in the market. He criticizes the Trump administration's muddled approach to antitrust and warns that decisions should not be made based on political favors and lobbying.

Former DOJ antitrust chief Jonathan Kanter has expressed his satisfaction with the outcome of Figma's IPO, valuing the company at $44 billion following its public listing. This success, according to Kanter, vindicates the Justice Department's and FTC's robust antitrust approach, which focused on protecting not just end consumers but also other players in the market [1].

Kanter's comments come as Figma's investors, including venture capitalists who had initially complained about the collapse of Adobe's acquisition attempt, are set to reap billions from the IPO. The Justice Department, under Kanter's leadership, investigated Figma's case and has since seen the company thrive as a public entity, rather than being absorbed into Adobe's fold [1].

Kanter criticizes the Trump administration's approach to antitrust, noting that it was muddled and often seemed more focused on cutting deals and settling cases rather than enforcing competition law. He warns that decisions should not be based on political favors and lobbying, emphasizing the importance of maintaining an independent and unbiased approach to antitrust enforcement [1].

The Figma IPO is significant not just for the company but also for the broader antitrust landscape. It highlights the potential benefits of allowing innovative startups to remain independent, rather than being acquired by larger corporations. This success story could serve as a model for future antitrust enforcement, encouraging regulators to prioritize protecting the competitive process over individual deals [1].

As AI continues to reshape various industries, antitrust regulators will need to adapt their strategies to address the unique challenges posed by this technology. Kanter suggests that the current antitrust toolkit is equipped to handle AI-related deals, emphasizing the need to elevate substance over form when evaluating potential anti-competitive behavior [1].

In conclusion, Jonathan Kanter's perspective on Figma's IPO underscores the importance of robust antitrust enforcement in protecting the competitive process and ensuring that innovative startups can thrive. His warnings about the potential pitfalls of political influence in antitrust decisions serve as a reminder of the need for an independent and unbiased approach to competition law.

References:
[1] https://finance.yahoo.com/news/welcome-jonathan-kanter-figmas-ipo-163727490.html