The UK Competition and Markets Authority (CMA) has initiated a Phase 2 investigation into the proposed merger between Getty Images and Shutterstock, following a Phase 1 review that raised significant concerns.

The CMA's initial investigation highlighted worries that the merger could lead to higher prices, worse commercial terms, and lower quality in the provision of editorial and stock imagery. The combined entity would be valued at over £3 billion and would serve a wide range of customers, including major media companies and small businesses in the creative sector.

The CMA categorized the content provided by both companies into two main types: editorial content, which is crucial for UK-centric news and events, and stock images, which are used for commercial purposes. The authority noted that while competition for stock content is global, local content is highly valued by customers.

<pDuring the Phase 1 investigation, the CMA received numerous concerns from various stakeholders, including the News Media Association, which represents around 900 media titles in the UK. These stakeholders expressed fears about the potential impact of the merger on the supply of both editorial and stock content.

Although Getty and Shutterstock proposed a complex set of remedies to address the CMA's concerns, the authority concluded that these measures were insufficient. As a result, the merger has been referred for a more detailed Phase 2 inquiry, which will be conducted by an independent panel of experts.

Additionally, the merger is also under review by the United States Department of Justice, indicating that the deal faces scrutiny on both sides of the Atlantic.