UK Regulators Say Getty-Shutterstock Merger Has Issues

It seemed like a picture-perfect moment: Getty Images and Shutterstock, two of the largest stock media services, announced in January that they would merge in a $3.7 billion deal, Andrew Nusca reported for Fortune Tech.

The UK Competition and Markets Authority (CMA) said it had concerns about the merger, forcing the companies to address them by Oct. 27. (Photo: Philafrenzy, Wikimedia Commons) 

The merger was intended to strengthen the companies as Big Tech’s investments in generative artificial intelligence threatened to erode their longstanding image, video, and music licensing businesses.

But the deal requires regulatory approval—and on Monday, the UK Competition and Markets Authority (CMA) said it had concerns about the merger, forcing the companies to address them by Oct. 27.

Would a combined company substantially lessen competition in the UK? According to the CMA, Getty is the “clear market leader,” while Shutterstock is “one of the few material alternatives.”

Moreover, “the CMA has not seen evidence that GenAI players are either currently, or likely to be in the next few years, an alternative to stock content for a significant proportion of demand.”

Could the companies divest assets to competitors PA Media/Alamy and Adobe to get the deal through? We’ll find out soon.