Generative AI has hit the stock photo industry hard. To fight back, two giants, Getty Images and Shutterstock, once planned to join forces and build an image empire. That closely watched deal has now fallen apart.
The Wall Street Journal reports that UK regulators stepped in with tough conditions. As a result, Getty Images has moved to end its $3.7 billion merger with rival Shutterstock.
This decision shows just how much power regulators hold worldwide. It also reveals a harsh truth. Even a green light from U.S. regulators doesn’t guarantee a smooth path elsewhere.
UK Regulators Force Getty to Walk Away
Getty and Shutterstock first announced their merger plan in January 2025. Back then, the goal was clear. The two firms wanted to combine resources and form a new company, Getty Images Holdings Inc. That new giant would compete against the wave of AI-made images still to come.
At first, the deal moved forward smoothly. Early this year, it won full approval from the U.S. Department of Justice, with no conditions attached. However, the other side of the Atlantic told a very different story.
In May, the UK Competition and Markets Authority drew a hard line. The regulator, known as the CMA, set one condition. Unless Shutterstock agreed to sell its global editorial business, the CMA said it would block the deal. That business covers celebrity and news photos. The regulator argued that a merger would weaken competition sharply. It also warned that UK media would lose choices. Image prices, the regulator added, could climb even higher.
Getty’s board responded through a filing with the U.S. Securities and Exchange Commission. The board voted unanimously against selling Shutterstock’s editorial unit. It also chose to end the merger deal entirely. Unless something major changes before July 7, this $3.7 billion deal is now dead.
A Failed Alliance Against AI
Getty CEO Craig Peters once called the merger a bold, game-changing move. That framing made sense at the time. Tools like Midjourney and OpenAI’s models have put real survival pressure on the old stock photo business.
Interestingly, both firms have already found smaller wins instead. Getty and Shutterstock each signed separate deals with OpenAI. Those deals let their watermarked, licensed images show up in ChatGPT search results. Most major media outlets still avoid AI-made images over copyright worries. Still, AI’s grip on the stock photo market keeps growing. That trend looks impossible to reverse.
A Warning for Cross-Border Mergers
This collapsed deal sends a clear warning to other cross-border mergers still in progress. According to outside analysts, the CMA’s tough stance signals real risk ahead. Even big entertainment mergers, like the Paramount and Warner Bros. Discovery deal, could clear U.S. regulators with ease. Yet they may still face steep hurdles in the UK and other overseas markets.
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