Shutterstock's (SSTK) entire editorial business should be divested as as a remedy to the loss of competition if its proposed merger with Getty Images (GETY) is completed, the UK's Competition and Markets Authority said Thursday.
After consulting with third parties, the regulator said in an interim report that the initial proposal of the two companies to divest Shutterstock's editorial business operating under the Backgrid and Splash brands would not be an effective remedy to the loss of competition due to the merger.
The final decision on the merger is set for June 14, according to the regulator.
"We disagree with the provisional conclusions set out in the CMA's interim report on remedies," Getty Images said in an emailed statement to MT Newswires. A company spokesperson said that the company would provide further evidence to the regulator.
Shutterstock did not immediately reply to a request for comment from MT Newswires.
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