The United Kingdom’s antitrust watchdog is intensifying its examination of Getty Images’ proposed $3.7 billion acquisition of Shutterstock, signaling mounting regulatory concerns over market concentration in the global stock imagery industry. The Competition and Markets Authority (CMA) announced Monday that it will open a full-scale, “Phase 2” investigation after determining that the merger could lead to higher prices, weaker licensing terms, and lower content quality for UK consumers and businesses.

The deal, which would unite two of the largest players in the visual media market, comes at a time when traditional image providers are struggling to adapt to the rapid rise of AI-generated content. Regulators are increasingly wary that large-scale consolidation could stifle innovation and limit options for creative professionals across industries.

CMA Raises Concerns Over Market Power

The CMA’s initial probe concluded that the merger “may result in a substantial lessening of competition within a market or markets in the United Kingdom.” Both Getty Images and Shutterstock are major suppliers of photos, videos, music, and editorial content to British media outlets, advertising agencies, and digital publishers — making their potential combination a significant competitive concern.

According to the CMA, several UK businesses and trade associations warned during the preliminary inquiry that the merger could reduce supply diversity and increase dependency on a single provider. Getty and Shutterstock proposed what the regulator called a “complex package of remedies” designed to address these fears, including commitments related to pricing transparency and content licensing. However, the CMA concluded that the measures did not “fully address” its competition concerns, prompting a deeper investigation.

Under British law, a Phase 2 review grants the CMA extensive powers to assess the deal’s broader market implications and impose corrective actions. These could include ordering divestitures, structural remedies, or, in the most severe outcome, blocking the deal entirely. The watchdog has until April 16, 2026, to deliver its final ruling.

Getty and Shutterstock Defend the Deal

Both companies have publicly reaffirmed their commitment to completing the merger despite the regulatory escalation. Getty described the CMA’s decision as “disappointing” but emphasized that it remains “committed to working constructively with regulators.” Shutterstock issued a similar statement, saying that Getty had offered “comprehensive remedies” and that the firm continues to see the merger as a path to long-term growth.

For Getty, the acquisition represents a strategic response to intensifying competition from AI-driven visual content platforms, which are rapidly eroding traditional stock image licensing revenues. By acquiring Shutterstock, Getty aims to scale its digital infrastructure, streamline licensing operations, and consolidate creative assets in an evolving marketplace where algorithmic image generation threatens legacy business models.

However, regulators fear that the merger could create a de facto monopoly in the stock imagery sector, undermining price competition and reducing the diversity of available content. The CMA’s reference to quality deterioration reflects concerns that market dominance could discourage innovation at a time when emerging technologies are transforming how visual content is created and monetized.

Regulatory Landscape and Market Implications

The Getty-Shutterstock review adds to a growing list of cross-border regulatory cases targeting consolidation in creative and digital industries. The U.S. Department of Justice is also reviewing the merger, underscoring how competition authorities are increasingly coordinated in overseeing global media transactions.

For the broader market, the CMA’s probe will serve as a litmus test for how regulators balance consolidation against innovation in the AI age. If the deal is cleared, it could reshape global competition among content providers. If blocked, it could signal a new era of regulatory vigilance against large-scale mergers in digital media.

With a final decision due in April, the stakes remain high for both Getty and Shutterstock — and for the creative industries that rely on them. For now, investors and artists alike will be watching closely to see whether regulatory caution prevails over market ambition.