Getty Images is walking away from its planned $3.7 billion merger with Shutterstock. The decision follows conditions imposed by the UK's Competition and Markets Authority (CMA) in May, which would force Shutterstock to divest its global editorial business, including the Backgrid and Splash paparazzi agencies.
Getty stated in an SEC filing on Tuesday that it is "not required to accept" the CMA's approval conditions. The collapse comes despite the US Department of Justice granting the deal "unconditional antitrust clearance" just three months ago. The divergent regulatory stances highlight a growing transatlantic divide in merger oversight.
The CMA's demands were aimed at preserving competition in the editorial image market. By requiring Shutterstock to shed assets that include high-profile paparazzi outlets, the regulator sought to prevent a combined entity from dominating news photography. Getty valued the deal at $3.7 billion when it was announced.
For Getty and Shutterstock, the termination means returning to independent strategies in a competitive market. Getty will avoid the operational complexity of integrating Shutterstock's editorial arm under restrictive conditions, while Shutterstock retains its full portfolio. Investors will now watch for each company's next move.
The episode underscores the increasing assertiveness of UK antitrust authorities in global tech deals. Critics argue that such conditions can deter cross-border M&A, while supporters see them as necessary to prevent market concentration.