The Phase 1 inquiry began on August 22, 2025, with the regulator setting October 20, 2025 as the deadline for its initial decision. 

The CMA is examining whether the merger may lead to a “substantial lessening of competition” in the United Kingdom, as provided under the Enterprise Act 2002. If serious risks are found, the case will move to a Phase 2 probe, which could delay or even block the transaction.

The deal, announced in January 2025, would create one of the most powerful forces in global stock photography, with projected annual revenues approaching $2 billion. 

Getty, Shutterstock Plan Merger to Strengthen Market Position

Under the agreement, Getty shareholders will control 54.7% of the new company, while Shutterstock investors will hold 45.3%. Shutterstock shareholders will also receive $9.50 in cash and 9.17 Getty shares for each of their holdings, subject to proration. Craig Peters, Getty’s chief executive, is expected to lead the combined entity.

In the United States, the Department of Justice issued a “Second Request” in February, pointing to more antitrust issues. Similar reviews are also underway in the European Union and Asia. Both companies have pledged to fully cooperate with regulators across all jurisdictions.

Shutterstock shareholders have already shown their support, with 82% voting in favour of the deal earlier this month. Analysts estimate that the merger could generate between $150 million and $200 million in cost savings over three years, primarily by reducing duplication and sharing infrastructure.

Beyond regulatory cases, experts warn of wider consequences. The global stock image market is valued at more than $4 billion, and Getty Images and Shutterstock together control a large slice of it even before the merger.

By joining forces, the companies plan to increase investment in artificial intelligence, improve licensing systems, and compete more aggressively against rivals such as Adobe Stock, Envato, and Unsplash.

However, not everyone is optimistic. Contributors who rely on these platforms to sell their content worry that the merger could drive down royalties, reshape algorithms that rank content, and reduce the diversity of platforms available to creators.

The CMA’s initial ruling in October will reveal how the merger proceeds. If the watchdog pushes the case into a deeper review, Getty and Shutterstock face a long road before they can unite under one roof.

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The deal, which still requires approval from a U.S. federal judge, follows a shareholder lawsuit targeting top executives of Alphabet Inc., Google’s parent company. 

The plaintiffs, led by two Michigan pension funds, claimed that Google’s leadership, including CEO Sundar Pichai and co-founders Sergey Brin and Larry Page, of neglecting their fiduciary responsibilities by allowing the company to face repeated antitrust investigations without adequate oversight, particularly in its core businesses: search, advertising technology, Android, and app distribution.

In response, Alphabet has agreed to introduce some governance reforms. These include the formation of a dedicated regulatory oversight committee within its board of directors, separate from the existing audit and compliance unit, and the creation of a senior executive team, reporting directly to CEO Sundar Pichai, to oversee regulatory matters. 

Again, the company plans to establish a compliance working group made up of product team managers and internal compliance specialists.

While Google denies any wrongdoing, it acknowledged the practical benefits of settling. “Over the years, we have devoted substantial resources to building robust compliance processes. To avoid protracted litigation we’re happy to make these commitments,” the company stated.

Shareholders will not receive any financial compensation. Their legal team believes the structural reforms themselves are a big win. “These reforms, rarely achieved in shareholder derivative actions, constitute a comprehensive overhaul of Alphabet’s compliance function,” the lawyers said, calling the outcome a “deeply rooted culture change.”

The proposed reforms must remain in place for at least four years. The shareholders’ legal team is expected to request up to $80 million in legal fees, separate from the $500 million Alphabet is set to invest in its internal reforms.

“This is one of the largest corporate commitments we’ve seen to compliance,” said Patrick Coughlin, one of the attorneys representing the shareholders. “We didn’t see the board getting the fulsome reports it should have gotten regarding antitrust risks. There are things it could have done, and should have done, earlier.”

The announcement came the same day that Judge Amit Mehta in Washington wrapped up hearings on another antitrust matter concerning Google’s monopoly in the search market. 

Mehta is expected to issue a ruling by August. The U.S. Department of Justice is considering drastic measures, including forcing Google to divest from its Chrome browser and share its search data with competitors.

The derivative case is filed under In re: Alphabet Inc Shareholder Derivative Litigation, Case No. 21-09388, in the U.S. District Court for the Northern District of California.

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