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UK Watchdog Forces Getty to Sell Shutterstock's Editorial Arm
16 Apr
Summary
- UK regulators demand Getty sell Shutterstock's editorial business.
- Merger faces scrutiny over potential competition loss in the UK.
- Getty and Shutterstock disagree with the provisional findings.
The British competition watchdog has provisionally decided that Getty Images must sell Shutterstock's editorial business to secure approval for their $3.7 billion merger. This provisional ruling by the Competition and Markets Authority (CMA) is a significant obstacle for Getty's acquisition of its rival, which has already received the green light from US regulators. The CMA's in-depth investigation identified a potential for a substantial lessening of competition within the UK's editorial market.
The CMA's inquiry group provisionally concluded that the sale of Shutterstock's global editorial operations, which include the Shutterstock Editorial, Backgrid, and Splash brands, would address these competition concerns. Regulators warned that a loss of competition could lead to higher prices and reduced choice for UK media outlets, with ripple effects on consumers. Getty Images has expressed disagreement, arguing that the market landscape has shifted with the rise of AI image-generation tools from tech giants.
