(Reuters) -Britain’s competition watchdog said on Monday the proposed $3.7 billion merger between U.S.-based Getty Images and rival Shutterstock could substantially harm competition in editorial and stock photography markets.
The deal between two of the world’s largest photo licensing platforms could lead to higher prices, worsened commercial terms and reduced service quality for UK media organizations and creative businesses, the Competition and Markets Authority said.
Such concerns have also been raised by the News Media Association and other industry stakeholders.
The two companies in separate statements said they remained committed to the merger and will engage with the watchdog to secure regulatory clearances.
Getty declined to comment if it has offered or plans to offer any remedies to address the CMA’s concerns.
Getty and Shutterstock struck a multi-billion-dollar deal in January to form a stock-image powerhouse at a time when generative AI tools are increasingly disrupting the industry.
If Getty Images and Shutterstock fail to offer acceptable remedies by the October 27 deadline, the CMA will refer the merger for a detailed phase 2 investigation.
(Reporting by Yamini Kalia and Simone Lobo in Bengaluru; Editing by Tasim Zahid and Arun Koyyur)
