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The
Competition and Markets Authority said that it was opening an
in-depth merger investigation after its preliminary inquiry
raised concerns that the deal would result in higher prices,
worse commercial terms, or lower quality of editorial and stock
images.
The proposed merger was announced in January with companies that
make money from still images created by humans face increasing
competition from those generated by artificial intelligence.
The CMA said it was taking a closer look after its initial
inquiry found that the combination of the two U.S. companies
might "result in a substantial lessening of competition within a
market or markets in the United Kingdom.”
Getty said it's “disappointed” but “remains committed” to the
deal and will continue to work with regulators and with
Shutterstock to secure approval.
Both companies license content including photos, illustrations,
music and videos to major British media companies, advertisers,
publishers and designers, as well as small and medium businesses
in the creative industry, the CMA said.
After businesses and trade groups voiced concerns to the CMA
during the preliminary inquiry about the supply of editorial and
stock content, Getty and Shutterstock responded with a “complex
package of remedies," according to the British regulator. The
watchdog escalates its investigation because the offers didn't
“fully address” the concerns.
Shutterstock said Monday that Getty offered “comprehensive
remedies” to avert further review, but that it too, remains
committed to the merger.
The CMA has until April 16 to make a final decision on the deal,
which it said the U.S. Department of Justice was also reviewing.
The watchdog could decide to either clear the transaction, or
impose its own remedies, including selling off parts of the
business or blocking it.
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