- £2.9 billion ($3.7 billion) deal faces UK regulatory pressure
- CMA may require Shutterstock to sell editorial business
- Concerns centre on reduced competition for UK media outlets
The proposed £2.9 billion ($3.7 billion) merger between Getty Images and Shutterstock is now facing deeper scrutiny in the UK, with regulators signalling that the deal could reshape image competition, particularly in the editorial market.
The Competition and Markets Authority (CMA), which has been reviewing the Getty Images–Shutterstock deal for months, has suggested that Shutterstock may need to sell its entire editorial business for the merger to go ahead. The move reflects growing concern over how much control the combined company could have over images used by UK news organisations.
At the centre of the issue is competition. Editorial images — from breaking news to red carpet events — are not easily replaced, and the CMA believes fewer suppliers could limit choice and push up costs for publishers.
Where competition could tighten
The regulator has already indicated that the merger could lead to a “substantial lessening of competition” in the supply of editorial images in the UK, as quoted in a news report. It found that Getty is already the dominant player in this space and that combining with Shutterstock would give the new entity control of close to or above half of the market.
For media outlets, that could mean fewer alternatives when sourcing time-sensitive images. The CMA has also pointed to high barriers for new entrants, suggesting it would be difficult for smaller players to step in and fill any gap left by reduced competition.
The concerns are specific to editorial content. On the commercial side — stock images used in advertising — the regulator said competition remains strong, partly due to the rise of generative AI and the presence of rivals such as Adobe and Canva.
Margot Daly, who is leading the CMA’s inquiry, reportedly said the authority is “minded to protect competition” by requiring the sale of Shutterstock’s editorial division. However, this is not a final decision, and the watchdog is consulting on possible remedies ahead of a ruling expected by June 14.
A deal caught between scale and scrutiny
Getty Images has pushed back against the findings, arguing that the merger will not harm competition in the UK editorial market. A company spokesperson reportedly said it disagrees with the regulator’s provisional conclusions and plans to provide further evidence.
The deal itself is structured with Getty paying around £260 million ($331 million) in cash along with shares, leaving its shareholders with a 54.7 per cent stake in the combined company.
From the companies’ perspective, the merger is about scale. Both have pointed to pressures from artificial intelligence and the growing availability of images through smartphones, which are changing how visual content is created and priced.
But regulators appear to be looking at a different risk. By bringing together two of the largest image providers, the deal could reduce direct competition at a time when traditional media outlets still rely heavily on licensed editorial content.
Earlier consultations in March explored multiple options, including selling only parts of Shutterstock’s editorial business such as Backgrid and Splash, or even blocking the deal altogether. The CMA said any solution would need to fully restore competition lost by the merger, as quoted in a news report.
Industry concerns have also centred on pricing. The watchdog warned that reduced competition could lead to higher subscription costs for UK news organisations, which already operate under tight margins.
For now, the merger remains on hold as the investigation continues. Without the deal, the CMA noted that both companies would likely continue competing as they do now.
Whether the final outcome reshapes the market or forces a compromise, the case is shaping up to be a key test of how far regulators are willing to go to protect competition in the digital content economy.
