The UK’s Competition and Markets Authority (CMA) has fined five prominent sports broadcast and production companies a total of £4.24 million for colluding to fix rates of pay for freelancers.
Sky, BT, IMG, ITV, and BBC admitted to breaching competition law by unlawfully sharing sensitive pay information regarding freelance workers, such as camera operators and sound technicians, who are crucial to the production of sports events like football matches and rugby tournaments.
The CMA’s investigation uncovered 15 instances where pairs of companies exchanged confidential information about pay rates, including day rates and pay rises for freelancers. In several cases, these companies sought to align their pay structures to avoid bidding wars and to create a unified approach to setting rates for workers. For instance, one company stated they had “no intention of getting into a bidding war” but wanted to “align and benchmark the rates” with a competitor. In another case, a company expressed its desire to “present a united front” with another competitor, further suggesting an effort to coordinate compensation rather than compete fairly.
The penalties imposed on the companies involved reflect their role in these unlawful activities, which are seen as damaging not only to the freelancers affected but also to the broader labor market.
The fines imposed on the four companies that admitted their involvement in the collusion are as follows:
- BT: £1,738,453, which includes a 15% leniency discount and a 20% settlement discount.
- IMG: £1,737,820, which includes a 40% leniency discount and a 20% settlement discount.
- ITV: £339,918, which includes a 42.5% leniency discount and a 20% settlement discount.
- BBC: £424,165, which includes a 20% settlement discount.
Sky, which was the first company to report its involvement in the illegal conduct before the CMA’s investigation commenced, has been exempted from a financial penalty as part of the CMA’s leniency program. The leniency program allows businesses that report anti-competitive behavior to receive a reduction in their fines or even total immunity if they cooperate fully with the investigation.
Juliette Enser, Executive Director for Competition Enforcement at the CMA, emphasized the importance of fair pay practices and robust competition in labor markets. “Millions watch sports on TV each day, with production teams working behind the scenes to make this possible — and it is only right they are paid fairly,” she stated. Enser further highlighted that such anti-competitive behavior could harm workers by limiting competitive pay rates and affecting their earnings. By ensuring that companies set pay rates independently of one another, the CMA aims to protect both the integrity of the market and the rights of workers.
The investigation underscores the importance of fair recruitment and employment practices, which allow businesses to grow and ensure that workers are paid appropriately for their skills and labor. It also serves as a warning to companies in all sectors that colluding on rates of pay can have serious legal and financial consequences.
In a separate matter, the CMA has closed an investigation into non-sports TV production and broadcasting companies, including the BBC, ITV, and several production companies such as Hartswood Films, Hat Trick Productions, and Red Planet Pictures. While the investigation into these companies did not result in fines or formal action, the CMA expressed its concerns about potential anti-competitive behavior. The authority decided to address these concerns by advising the businesses involved on how to comply with competition law moving forward. This case was resolved through guidance, as opposed to formal penalties, reflecting changes in industry practices and the deterrent effect of the sports broadcasting investigation.
The CMA also indicated that it will publish further guidance on how employers can avoid anti-competitive behavior in labor markets in the coming months. This guidance will aim to educate businesses on the legal requirements and best practices to ensure fair competition and avoid collusion.
