GETTY KILLS $3.7B SHUTTERSTOCK MERGER OVER UK RULES

Getty said it will not accept UK Competition and Markets Authority restrictions that would force Shutterstock to divest its editorial business as a condition of the merger. The US Department of Justice granted unconditional antitrust clearance in February, but the UK regulator took a harder line on competitive concerns. Getty's decision to walk away marks a rare case where transatlantic regulatory divergence derails a major tech deal. Shutterstock's stock fell sharply following the announcement. The merger, announced in October 2023, would have combined two major players in the stock imagery market. Getty argued the UK's divestiture requirement was incompatible with the deal's economics and strategic rationale. The breakup highlights growing differences in how US and UK authorities approach merger reviews, with UK regulators increasingly willing to impose structural remedies that US counterparts rejected.