CMA update: Getty/Shutterstock

CMA conditionally clears Getty merger with Shutterstock

CMA independent inquiry group concludes deal can proceed if Shutterstock sells its editorial business

·    After extensive evidence gathering, inquiry group concludes deal did not raise concerns for stock content globally

·    Inquiry group finds deal raises concerns in the supply of editorial content in the UK

·    Sale of Shutterstock's editorial business to suitable purchaser would address concerns

The Competition and Markets Authority's independent inquiry group has concluded the merger between Getty and Shutterstock would lead to competition concerns for editorial content supplied to UK media outlets, but not for stock content supplied globally.

Editorial content includes pictures and videos of newsworthy events, people and landmarks. In the UK, customers require both global and country-specific content, relating to sports fixtures, news events and celebrities.

The inquiry group found that a loss of competition between the two businesses would reduce choice for UK media outlets and could lead to higher prices, with knock-on negative impacts for consumers who rely on high quality editorial content to stay informed. During the investigation, the CMA received extensive evidence, including from UK media organisations, publishers, competitors and content suppliers, which showed that Shutterstock provides one of the few meaningful alternatives to Getty, the market leader in editorial content in the UK.

The inquiry group concluded that a sale of Shutterstock's global editorial business, which operates under the Shutterstock Editorial, Backgrid and Splash brands and competes with Getty across live and archive news, sport and entertainment content, could resolve the competition concerns identified.

Getty and Shutterstock offered to sell Shutterstock's global editorial business at the end of the CMA's phase 1 investigation, previously describing it as "peripheral to Shutterstock's core operations".

Once a sale of the Shutterstock editorial business is concluded to a CMA-approved purchaser, the Getty and Shutterstock merger, which the businesses have claimed will produce cost synergies of $150-200 million annually, can proceed.

Margot Daly, chair of the independent inquiry group leading this investigation, said: 

"Editorial images, which cover everything from red carpet and celebrity images to pictures and videos of sports or major breaking news events, are used every day by media outlets, publishers and filmmakers to bring stories to life for UK audiences. Any loss of competition could be strongly felt by these customers.

"This deal can proceed if the businesses sell Shutterstock's editorial business to a suitable buyer to ensure that UK media outlets and their customers aren't worse off as a result. We will continue to work with Getty and Shutterstock throughout any sales process."

More information can be found on the CMA's Getty / Shutterstock investigation case page.

NOTES TO EDITORS:

1.   At the end of the CMA's phase 1 investigation, Getty and Shutterstock offered to sell Shutterstock's entire global editorial business, which operates under the Shutterstock Editorial, Backgrid and Splash brands and competes with Getty across live and archive news, sport and entertainment content.

2.   At that stage, the package of remedies offered did not address the CMA's concerns at phase 1 in respect of stock content, and so the deal had to be referred to phase 2.  

3.   After the CMA published its interim report in February, the businesses put forward a substantially reduced proposal to sell only Shutterstock's Backgrid and Splash celebrity entertainment businesses, which primarily focus on paparazzi, including certain types of paparazzi which Getty does not supply. Having consulted on this proposal, the inquiry group concluded that this would not be an effective remedy because it would not restore competition that Shutterstock currently provides. No third party told the CMA it would be effective.