UK regulator conditionally clears $3.7 billion Getty-Shutterstock merger
Conditional Approval and Regulatory Background
May 15 (Reuters) - Britain's competition regulator on Friday said it would clear Getty Images' proposed $3.7 billion merger with Shutterstock if the latter sells its editorial arm to address concerns around news content supply in the country.
Details of the CMA Investigation
The decision follows an in-depth investigation launched in November by the UK's Competition and Markets Authority (CMA) after initial remedies offered by the U.S.-based companies had failed to address the watchdog's concerns.
Company Responses and Market Reaction
Getty Images and Shutterstock did not immediately respond to requests for comment. The companies' stocks were up 3.8% and 1.1%, respectively, in U.S. premarket trading.
Divestment Proposal
The CMA on Friday said the companies had since offered to divest Shutterstock's global editorial business, home to brands such as Backgrid and Splash, which they described as non-essential to their core operations.
Potential Impact on UK Media Market
Concerns Over Competition and Pricing
The regulator's independent inquiry group found that the editorial business, if not sold, would reduce choice for UK media outlets and could ultimately raise prices for customers , saying Shutterstock is one of the "few meaningful" rivals to Getty.
Reporting Credits
(Reporting by Ankita Bora and Tuhina in Bengaluru; Editing by Vijay Kishore)
