Getty Images is canceling its proposed $3.7 billion merger with Shutterstock, citing requirements from a U.K. competition regulator that would force the company to divest part of Shutterstock. Multiple outlets report that the U.K. regulator approves the transaction only if Shutterstock’s editorial business is sold off. According to the accounts, Getty Images’ board does not consider that condition acceptable and moves to end the deal rather than restructure it to meet the regulator’s divestiture requirement. The decision is described as stemming from the regulatory condition being a non-starter for Getty. The reports are consistent that the merger’s termination follows the U.K. regulator’s stance on competition concerns and the specific remedy of divesting Shutterstock’s editorial operations. None of the sources provide an alternative path to closing the merger or a new regulatory proposal; instead, they characterize the outcome as a direct result of the U.K. blocking the deal unless Getty agrees to sell the specified business.