Major UK broadcasters, including BT, ITV, and BBC, admit to breaking competition laws
The Competition and Markets Authority (CMA) has fined four major sports broadcasting and production companies a total of £4,240,356 for illegally sharing sensitive information regarding freelance pay rates. BT, ITV, IMG, and the BBC were found to have engaged in unlawful discussions about the fees paid to freelancers, including camera operators and sound technicians.
Sky, which was also involved in the practice, avoided financial penalties as it was the first to report its actions to the CMA, triggering the investigation.
Illegal Collusion on Freelancer Pay
The investigation revealed that these broadcasters had shared confidential information about pay rates on at least 15 occasions. This included discussions about daily rates and proposed pay rises. In many cases, companies deliberately aligned their pay structures to avoid competition.
One exchange showed a company stating that it had “no intention of getting into a bidding war” and wanted to “benchmark the rates” with its competitor. In another instance, a business expressed a desire to “present a united front” with another broadcaster regarding freelancer payments.
Such actions violate UK competition law, which requires businesses to determine wages independently to ensure fair and competitive pay for workers. By unlawfully exchanging this information, these companies may have suppressed freelancer earnings and prevented a fair labour market from operating in the sports broadcasting sector.
Breakdown of the Fines
The CMA’s investigation found that five companies were involved in this illegal conduct:
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Sky: 10 infringements (March 2014 – January 2021) – No fine (first to report to the CMA)
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BT: 6 infringements (August 2014 – September 2021) – £1,738,453 (includes a 15% leniency discount and a 20% settlement discount)
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IMG: 6 infringements (April 2016 – October 2021) – £1,737,820 (includes a 40% leniency discount and a 20% settlement discount)
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ITV: 5 infringements (March 2014 – May 2018) – £339,918 (includes a 42.5% leniency discount and a 20% settlement discount)
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BBC: 3 infringements (July 2016 – October 2021) – £424,165 (includes a 20% settlement discount)
The fines were reduced as all four companies admitted to breaking the law and cooperated with the investigation. BT, IMG, and ITV received further reductions under the CMA’s leniency programme after coming forward once they became aware of the probe.
CMA’s Stance on Labour Market Collusion
Juliette Enser, Executive Director for Competition Enforcement at the CMA, highlighted the importance of fair pay in the broadcasting industry.
“Sports broadcasts attract millions of viewers daily, relying on skilled production teams to bring live coverage to screens these professionals deserve fair pay for their work. Labour markets play a vital role in economic growth, and businesses must ensure they comply with the law to protect workers’ rights.”
The CMA has warned that companies engaging in cartel behaviour could face severe penalties. However, firms that voluntarily disclose illegal activities and cooperate with investigations may receive full immunity or reduced fines.
Non-Sports Broadcasting Investigation Closed
In a related but separate probe, the CMA had been investigating potential anti-competitive behaviour in non-sports TV production. Companies including the BBC, ITV, and several independent production houses were under scrutiny. However, the regulator has decided to close this case, citing changes in industry practices and the deterrent effect of the sports broadcasting investigation.
Moving forward, the CMA plans to release further guidance for employers to prevent similar anti-competitive practices in the labour market.