Getty Images, an American visual media company, has abandoned its planned merger with Shutterstock, ending the proposed $3.7 billion deal after deciding not to accept a UK competition regulator’s requirement to sell Shutterstock’s editorial business.The two companies unveiled the all-stock merger in January 2025, positioning it as a move to build a visual content powerhouse better equipped to compete in the artificial intelligence era. However, the UK’s Competition and Markets Authority (CMA) approved the transaction only on the condition that Shutterstock divest its editorial operations, citing concerns that the combined company would reduce competition and drive up costs for British media organisations.Getty said its board unanimously concluded that proceeding with the deal under those terms was not in the company’s best interests. The company formally terminated the merger agreement after the extended July 6 deadline, according to a regulatory filing.The collapse comes as both Getty and Shutterstock face mounting pressure from AI-powered image generators, which are reshaping the visual content industry by offering faster and lower-cost alternatives to traditional stock photography.“The outlook for each looks even more difficult” without the scale the merger would have provided, Luke Stillman, managing director at advisory firm Madison and Wall, said, while noting that the combined company may only have delayed growing competitive pressures.The CMA described Getty’s decision to abandon the merger as “a commercial choice”, adding that the companies themselves had originally proposed the divestment remedy during the regulatory review.Getty, which competes with Reuters and the Associated Press in editorial photography and video licensing, said it also plans to appoint a financial adviser to explore strategic financing options.Getty shares were volatile after the announcement, while Shutterstock shares fell sharply in extended trading.