Getty Images has abandoned its proposed $3.7bn merger with Shutterstock after deciding not to accept the Competition and Markets Authority's (CMA) requirement that Shutterstock sell its global editorial business.

The CMA had conditionally approved the transaction in May, concluding the deal could proceed if Shutterstock divested its editorial operations, including the Shutterstock Editorial, Backgrid and Splash brands.

Getty has now formally terminated the merger agreement, bringing the deal to an end despite receiving unconditional clearance from US regulators.

The regulator said Getty's decision was a commercial one rather than the result of an outright prohibition.

Responding to the decision, Margot Daly, chair of the independent inquiry group leading the investigation, said: "The decision by Getty to abandon its merger with Shutterstock is ultimately a commercial choice. Our investigation cleared the merger on the condition that the companies sold Shutterstock’s editorial business – which is something they initially offered to do at an earlier stage of proceedings."

The CMA found the merger would have reduced competition in the UK market for editorial photography and video, where Shutterstock is one of Getty's few meaningful rivals, potentially leading to higher prices and less choice for media organisations. However, it found no competition concerns in stock content, citing increasing competition from generative AI providers alongside established rivals Adobe and Canva.

Daly added: "Since our final report, we have worked swiftly and closely with Getty and Shutterstock on the proposed sale and have engaged with several potential buyers to assess their suitability. This process was at an advanced stage at the time of Getty’s announcement."

Originally announced in January 2025 as a merger of equals, the deal was expected to create annual cost synergies of $150m-$200m within three years, largely from the companies' stock content operations.

The proposed transaction was structured as a merger of two New York-listed companies, with Getty as the surviving public entity and Craig Peters remaining CEO of the combined group.

Getty concluded that divesting Shutterstock's editorial business removed too much of the transaction's strategic value, prompting it to walk away.

The CMA said it would now cease work on the case following Getty's decision.

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