Getty Images has terminated its $3.7 billion merger agreement with Shutterstock, walking away from a deal that would have created a dominant global supplier of stock photography and video. The decision, communicated in writing on 7 July, follows a unanimous board vote against complying with a divestiture requirement imposed by the UK’s Competition and Markets Authority (CMA). In afternoon trading, Getty shares fell 10% and Shutterstock lost 3%.

The regulatory paths on either side of the Atlantic diverged sharply. The US Department of Justice approved the transaction in April without conditions. The CMA, however, concluded in May that combining the two firms would substantially lessen competition in the UK market for editorial content—operational and archival images and video used by media organisations—leading to higher prices and reduced choice. It therefore made clearance conditional on Shutterstock selling that business unit to an approved buyer.

Getty’s board judged the remedy unacceptable. The company had until 6 July to change course, and when no alternative emerged, it sent a termination notice to Shutterstock. The CMA described the collapse as “a commercial choice” and noted that the two companies had themselves initially proposed selling the editorial arm. Margot Daly, who chaired the CMA inquiry, said the regulator had worked “rapidly and closely” with the parties and had been assessing several potential purchasers; the process was at an advanced stage when Getty pulled out.

The merger, announced in January 2025, was structured to combine two of the world’s largest visual-content platforms, licensing photos, illustrations, and video to media groups, advertisers, and creative businesses. The combined entity would have held a commanding position in the supply of editorial imagery, a concern that proved insurmountable in London despite Washington’s green light.

The termination takes effect upon delivery of the notice, leaving both companies to pursue independent strategies. No further regulatory milestones remain for the abandoned transaction.