UK Watchdog Pushes Getty to Divest Shutterstock Editorial Arm in $3.7B Merger Review

The Competition and Markets Authority (CMA) issued a provisional ruling indicating that divesting Shutterstock’s global editorial operations could resolve concerns about reduced competition in the UK. These operations include brands such as Shutterstock Editorial, Backgrid, and Splash, which provide news, sports, and entertainment imagery to media organizations worldwide.

According to The Financial Times, the CMA previously warned that the merger could lead to a “substantial lessening of competition” in the UK’s editorial content market. Both Getty and Shutterstock are major suppliers of stock images and editorial photography, making them key players for newsrooms and publishers.

Margot Daly, who chairs the independent inquiry group overseeing the CMA’s investigation, highlighted the potential risks of the merger. “We provisionally found that a loss of competition could lead to UK media outlets, large and small, facing a loss of choice or getting a more expensive service, with knock-on effects for consumers that rely on high-quality content to stay up to date,” she said.

Getty and Shutterstock have both pushed back against the regulator’s findings. Getty, in particular, has argued that the competitive landscape has evolved, pointing to the growing presence of US technology companies and artificial intelligence tools that generate images. The companies also maintain that their proposed remedies are sufficient to address regulatory concerns.

The CMA noted that while the companies initially offered to sell Shutterstock’s broader editorial business, they later scaled back the proposal to include only Backgrid and Splash, which focus largely on celebrity and paparazzi content. However, the regulator concluded that this narrower divestment would not adequately preserve competition.

Related: DOJ Clears Getty Images–Shutterstock Merger Without Conditions

This case underscores ongoing tensions between the CMA and merging companies, as well as differences between international regulators. As reported by The UK watchdog has previously taken a stricter stance than its counterparts, including its initial opposition to Microsoft’s acquisition of Activision Blizzard in 2023 before approving a revised deal.

The outcome of the Getty-Shutterstock merger review also comes at a time when the UK government is reassessing the CMA’s approach to mergers. Officials are exploring ways to streamline regulatory processes and encourage economic growth, amid calls for the agency to adopt a more business-friendly posture.

Shares in both Getty and Shutterstock dipped slightly in New York trading following the CMA’s announcement, reflecting investor uncertainty around the deal’s future.

The decision remains provisional, and both companies, along with industry stakeholders, have the opportunity to provide further input before the CMA reaches a final ruling. Getty’s chief executive, Craig Peters, previously told The Financial Times that the company could reconsider its UK presence if the merger were ultimately blocked.

In a statement, Getty reiterated its position: “The proposed merger does not constitute a substantial lessening of competition in the supply of editorial content in the UK, where customers continue to benefit from a wide range of choice and competitive alternatives. We also believe that the remedy proposed by the parties addresses the CMA’s provisional concerns.”

Source: The Financial Times