A merger between two of the world’s largest photo licensing platforms will face a deeper investigation from Britain’s competition authority amid concerns it could lead to higher prices and lower quality images for customers.
The Competition and Markets Authority (CMA) said Getty Images and Shutterstock had offered a “complex package of remedies at a late stage” of the first phase of its inquiry, but these “did not fully address its concerns”.
Getty announced plans to take over its stock-photo rival Shutterstock in January in a deal that would create a business with combined revenues of more than £3 billion. Customers of the two companies include major media groups, publishers and advertisers, as well as small and medium-sized businesses in the creative sector.
The CMA said it had heard widespread concerns from business, trade associations and other stakeholders about the potential impact of the takeover on the supply of editorial and stock content, including from the News Media Association, which represents around 900 titles in the UK.
The first phase of its inquiry considered the deal’s implications for editorial content, such as pictures and videos of newsworthy people and events, and stock images, which are existing photos licensed out for commercial purposes.
The CMA will now conduct a more in-depth phase 2 inquiry, with a final decision to be made by April 19.
Shares in Getty, which is listed in New York, declined more than 5 per cent yesterday, while Shutterstock fell nearly 10 per cent. Both companies have faced a downturn in demand for stock images following the rise of mobile cameras.
Getty, which is based in Washington, said it was “disappointed” by the regulator’s decision but remained committed to the proposed merger
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