Getty pulls the plug on Shutterstock merger after UK regulator objects
Getty Images has officially abandoned its proposed US$3.7 billion merger with Shutterstock after deciding the price of regulatory approval in the UK was simply too high.
The two stock photography giants had planned to join forces in a deal first announced in January 2025, arguing a combined company would be better equipped to navigate an industry being rapidly reshaped by artificial intelligence.
Instead, they'll remain rivals after the UK's Competition and Markets Authority (CMA) insisted Shutterstock sell its entire editorial photography business before the merger could proceed.
According to Engadget, Getty's board unanimously voted to walk away rather than accept the condition, allowing the agreement to lapse after its extended July 6 deadline.
The CMA's concern wasn't about commercial stock imagery. In fact, the regulator concluded that market remains highly competitive, thanks in part to the explosion of AI image generators and established players such as Adobe and Canva.
Instead, it identified editorial photography as the area where the merger could significantly reduce competition.
Editorial photography still relies on photographers being on the ground to capture news, sport, entertainment and current events.
Shutterstock's editorial portfolio includes well-known agencies such as Rex Features, alongside celebrity photo agencies Backgrid and Splash.
Getty and Shutterstock had offered to sell Backgrid and Splash in an effort to satisfy regulators, but the CMA ruled that wasn't enough, insisting the entire editorial business be divested. Getty ultimately decided the concession wasn't worth making.
For photographers who license editorial work, the outcome means there will continue to be two major agencies competing for content rather than one dominant player, which is a win.
Interestingly, the merger had already cleared US antitrust review without conditions, making the UK's objection the deciding factor in the deal's collapse.
The market reacted swiftly. Getty shares fell after the announcement, while Shutterstock's stock dropped much more sharply, reflecting the greater uncertainty facing the smaller company.
The failed merger also highlights how quickly the stock photography business is evolving. While AI has become a major competitive force in commercial stock imagery, regulators signalled they still see human-created editorial photography as a distinct market worthy of protection.
Getty, meanwhile, appears to be pursuing a different AI strategy. Rather than growing through acquisition, the company has increasingly focused on licensing its content to AI companies while continuing to explore how copyrighted imagery can be used in the development of generative AI systems.