Why Getty Images Shares Are Falling Today – Getty Images Holdings (NYSE:GETY)

Getty Images Holdings, Inc. (NYSE:GETY) shares traded lower in the premarket on Tuesday after new developments in the ongoing merger and legal battle caught investors’ attention.

The British Competition and Markets Authority (CMA) has completed its investigation into the proposed merger of Getty Images with Shutterstock Inc. (NYSE:SSTK), moving the deal to a Phase 2 trial.

The CMA’s decision followed Getty Images’ offer to adopt several legal remedies intended to resolve antitrust concerns without a more in-depth investigation.

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The company said it was disappointed with the decision but remains focused on completing the merger efficiently with Shutterstock’s cooperation.

Legal victory against AI stability

On November 4, Getty Images announced a major victory in its lawsuit against the artificial intelligence company Stability AI in the United Kingdom. The ruling showed that Stability AIs Stable diffusion model violated Getty Images’ trademarks by reproducing its logos in AI-generated images.

The court also rejected Stability AI’s attempt to transfer responsibility for infringement to users, affirming that responsibility lies with the model’s developer.

Copyright precedent established

Judges further ruled that Getty Images’ copyrighted works were used in the model’s training, regardless of where that process took place. The decision sets a new precedent and confirms that AI models – even though they are intangible – can still infringe copyright under existing law. Getty Images plans to use these findings in related US lawsuits.

The company highlighted broader concerns about creators’ ability to protect their work amid the rapid rise of AI.

It noted that even major content producers face obstacles due to limited transparency in AI data sourcing. Getty Images has called on governments, including Britain, to introduce stricter disclosure rules to help artists and organizations protect their intellectual property rights.

Price promotion: GETY shares are trading 3.06% lower at $1,900 premarket at last check on Tuesday.

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Photo: Shutterstock