Nov 3 (Reuters) - Britain's competition watchdog said on

Monday it will launch an in-depth investigation into the

proposed merger between U.S.-based Getty Images ( GETY ) and

rival Shutterstock ( SSTK ) after remedies offered by the

companies failed to address its concerns over the deal.

Getty and Shutterstock ( SSTK ) offered a "complex package of

remedies" late in the Phase 1 investigation, but the regulator

said these did not fully address concerns the deal could lead to

higher prices and lower quality editorial and stock imagery.

The Competition and Markets Authority said it had heard

concerns from businesses, trade associations and industry

stakeholders including the News Media Association over the

merger of the world's largest photo licensing platforms.

Getty Images ( GETY ) said in a statement it had offered

comprehensive remedies to avoid a Phase 2 review and was

disappointed by the CMA's decision, but added it remains

committed to the merger and will continue engaging with the

regulator.

Shutterstock ( SSTK ) did not immediately respond to a request for

comment.

Getty and Shutterstock ( SSTK ) struck a $3.7 billion deal in January

to form a stock-image powerhouse at a time when generative AI

tools are increasingly disrupting the industry.