UK regulator refers Getty-Shutterstock merger for an in-depth investigation

(Reuters) -Britain's competition watchdog said on Monday it will launch an in-depth investigation into the proposed merger between U.S.-based Getty Images and rival Shutterstock after remedies offered by the companies failed to address its concerns over the deal.

Getty and Shutterstock offered a "complex package of remedies" late in the Phase 1 investigation, but the regulator said these did not fully address concerns the deal could lead to higher prices and lower quality editorial and stock imagery.

The Competition and Markets Authority said it had heard concerns from businesses, trade associations and industry stakeholders including the News Media Association over the merger of the world's largest photo licensing platforms.

Getty Images said in a statement it had offered comprehensive remedies to avoid a Phase 2 review and was disappointed by the CMA's decision, but added it remains committed to the merger and will continue engaging with the regulator.

Shutterstock did not immediately respond to a request for comment.

Getty and Shutterstock struck a $3.7 billion deal in January to form a stock-image powerhouse at a time when generative AI tools are increasingly disrupting the industry.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Shailesh Kuber)