https://techcrunch.com/2025/08/02/lina-khan-points-to-figma-ipo-as-vindication-for-ma-scrutiny/ [tc-lockup] TechCrunch Desktop Logo [tc-lo] TechCrunch Mobile Logo * Latest * Startups * Venture * Apple * Security * AI * Apps * Events * Podcasts * Newsletters Search [ ]Submit * Site Search Toggle Mega Menu Toggle Topics Latest AI Amazon Apps Biotech & Health Climate Cloud Computing Commerce Crypto Enterprise EVs Fintech Fundraising Gadgets Gaming Google Government & Policy Hardware Instagram Layoffs Media & Entertainment Meta Microsoft Privacy Robotics Security Social Space Startups TikTok Transportation Venture More from TechCrunch Staff Events Startup Battlefield StrictlyVC Newsletters Podcasts Videos Partner Content TechCrunch Brand Studio Crunchboard Contact Us [GettyImages-1708316139] Government & Policy Lina Khan points to Figma IPO as vindication of M&A scrutiny Anthony Ha 1:58 PM PDT * August 2, 2025 A surprising figure is celebrating Figma's successful IPO: Lina Khan, former chair of the Federal Trade Commission. In a Friday afternoon post on X, Khan linked to an article about Figma's impressive first day of trading and argued the IPO is "a great reminder that letting startups grow into independently successful businesses, rather than be bought up by existing giants, can generate enormous value." Khan was alluding to a $20 billion deal for Adobe to acquire Figma that fell through back in 2023. While Adobe cited the lack of a "clear path" to approval from the European Commission and the U.K. Competition and Markets Authority, the acquisition also faced regulatory scrutiny in the United States over concerns that it could prevent Figma from being an "effective competitor" to Adobe. Khan was FTC chair at the time, leading the agency to challenge Big Tech on fronts including startup acquisitions -- to the point that companies tried to avoid this scrutiny with "reverse acqui-hires" in which they hired key team members and licensed technology rather than acquiring startups outright. (The practice seems to be continuing despite Khan's departure from the FTC.) While her aggressive stance led to intense criticism from corners of the tech industry, she defended her approach by saying that only a tiny percentage of deals received "a second look" and arguing that founders would ultimately benefit from "a world in which you have six or seven or eight potential suitors" rather than "just one or two." And although Khan -- who'd been appointed by President Joe Biden -- resigned at the start of the second Trump administration, her comments Friday paint the Figma IPO as a vindication for her approach, calling the IPO "a win for employees, investors, innovation, and the public." Of course, Khan's critics are more likely to see Figma's success as coming despite regulatory scrutiny, not because of it. For example, Wedbush Security analyst Dan Ives told Business Insider, "Figma is a massive success, but it's because of the company's innovative growth and not due to the FTC and Kahn." Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital -- just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech -- grab your ticket now and save up to $675 before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital -- just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech -- grab your ticket now and save up to $675 before prices rise. San Francisco | October 27-29, 2025 REGISTER NOW Topics Figma, Government & Policy, Lina Khan, Startups Anthony Ha Anthony Ha Anthony Ha is TechCrunch's weekend editor. Previously, he worked as a tech reporter at Adweek, a senior editor at VentureBeat, a local government reporter at the Hollister Free Lance, and vice president of content at a VC firm. He lives in New York City. View Bio Event Logo October 27-29, 2025 San Francisco Put your brand in front of 10,000+ tech and VC leaders across all three days of Disrupt 2025. Amplify your reach, spark real connections, and lead the innovation charge. Secure your exhibit space before your competitor does. 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