Getty Images has abandoned its planned $3.7bn merger with rival Shutterstock following conditions imposed by the UK's Competition and Markets Authority. The decision sent Shutterstock shares plunging more than 28 per cent to $10.01 in after-hours trading, wiping out significant market value for the US-listed company.

The merger, originally announced last year and cleared by American regulators, faced opposition from the CMA which raised concerns about reduced competition in the UK media market. Regulators warned that combining the two major stock photo suppliers could limit choice and increase costs for British media outlets, ultimately affecting consumers who rely on quality visual content.

In April, the CMA told Getty it would need to sell Shutterstock's editorial business to gain approval. The agency specified that divesting Shutterstock Editorial, Backgrid and Splash brands could address competition concerns. When the companies failed to reach an agreement on these terms, Getty's board voted to terminate the transaction entirely.

The collapsed deal reflects growing pressure on traditional content providers as AI-powered image-generation tools reshape the industry. Both companies supply stock images and editorial photography to newsrooms worldwide, but regulatory scrutiny shows authorities remain focused on maintaining competitive markets in the face of rapid technological change.