The planned merger between Shutterstock and Getty Images presents a “substantial” risk to competition according to UK regulators, prompting an in-depth investigation.
The Competition and Markets Authority (CMA) opened the initial investigation phase in August after determining there was sufficient risk that the merger of the two firms would harm competition in the stock image market.
The CMA on Monday announced the initial inquiry has found enough evidence of risk to launch an in-depth Phase 2 investigation that could shut down the £3bn merger.
“The CMA has decided, on the evidence currently available to it, that it is or may be the case that this merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom,” the regulator said.
“This merger will be referred for an in-depth, phase 2 investigation unless the parties offer an acceptable undertaking to address these competition concerns.”
Getty Images announced its intention to acquire Shutterstock in January, a deal that would give the combined entity an enormous share of the global stock image market.
With the Phase 1 decision announced, the parties have until 27 October to offer an undertaking addressing the CMA’s concerns. If nothing sufficient is offered, the in-depth Phase 2 investigation will commence.
