Getty-Shutterstock Merger Could Hurt Competition, Watchdog Says
A U.K. watchdog has raised preliminary concerns about the supply of editorial content in the proposed merger between U.S. photo agencies Getty Images and Shutterstock, while giving the green light to its impact on the broader global market for stock imagery.
The Competition and Markets Authority (CMA) released an interim report last week, stating it believes the deal could reduce competition in the U.K. editorial content space, even though it does not see similar risks worldwide. This includes press photos from breaking news events, sports, and celebrity events.
Press Gazette reports that the lack of concern in the global market is partly because of generative AI, which can produce convincing stock imagery. It also cites major competitors in the form of Adobe and Canva.
Getty and Shutterstock pushed back against the assessment that the deal could hamper the U.K. market and say they intend to submit formal responses before a March 12 deadline. Reuters reports that the two remain engaged with the U.S. Department of Justice, which is conducting its own review of the transaction.
The provisional findings represent another hurdle for the $3.7 billion merger, which would combine two of the largest players in the visual media industry. Regulators in Europe and the United States have been closely examining whether the deal could weaken competition for news organizations and creative professionals.
The CMA escalated its scrutiny in October by opening an in-depth phase two investigation after concluding that proposed remedies from the companies did not adequately resolve its concerns.
Despite the regulatory headwinds, market reaction was modestly positive, with Getty shares rising nearly 2% and Shutterstock edging up about 0.9% in U.S. trading.
“Editorial images – which cover everything from red carpet and celebrity images to pictures and videos of sports or major breaking news events – are used by media outlets, publishers and filmmakers to bring stories to life for U.K. audiences. Any loss of competition could be strongly felt by these customers,” Margot Daly, chair of the independent panel leading the investigation for the CMA, says per Press Gazette.
“Having reviewed a wide range of evidence, our initial view is that this deal could lead to worse outcomes for customers of Getty and Shutterstock’s editorial content in the UK. We welcome views on our initial findings. It’s also open to Getty and Shutterstock to submit a workable solution which would effectively address our provisional concerns.”
