Five major sports broadcasters and media production firms broke the law on fixing freelance pay rates and have been fined £4 million in total by the regulator.
A Competition and Markets Authority (CMA) investigation into freelance pay revealed that Sky, BT, IMG, ITV and BBC had admitted to colluding on rates of pay for freelancers.
Employers shared workers’ pay rates affecting jobs such as camera operators and sound technicians working on large sporting events for football and rugby.
The fines are large but could have been bigger as fines were reduced because the employers involved admitted breaking the law and settled the case.
In addition, CMA investigators said BT, IMG and ITV had been given lower fines because they had come forward about their involvement when they became aware of the investigation. Reduced fines can be given under the CMA’s leniency programme, which recognises firms that assist an investigation.
Sky alerted the CMA to its involvement before the investigation had started meaning it is exempt from a financial penalty.
The CMA found 15 instances where a pair of companies unlawfully shared sensitive information about pay, including day rates and pay rises.
Investigators said that in most cases, the explicit aim was to coordinate how much to pay freelancers. It highlighted one example where one employer told another they have “no intention of getting into a bidding war” but “want to be aligned and benchmark the rates”. Another separate example highlighted by the investigation revealed that a company had said they wanted to “present a united front” with its competitor.
Juliette Enser, executive director for competition enforcement at the CMA, said: “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.
“Labour markets are important for economic growth as a whole. Good recruitment and employment practices help people access the right jobs where they’re paid appropriately and make it easier for businesses to expand and find the workers they need.
“Companies should set rates independently of each other so pay is competitive – not doing so could leave workers out of pocket. Employers must ensure those who hire staff know the rules and stick to them to prevent this happening in the future.”
The CMA said that an employer that participates in “cartel activity” may receive total immunity or a reduction in fines if it comes forward with information about the conduct and fully cooperates. Employers working with investigators help uncover illegal activity, which the authority said “often happens in secret”. Cooperation speeds up any investigation and makes it more robust.
The CMA’s findings for each company are:
- Sky (10 infringements between March 2014 and January 2021) – no fine (as it was the first to report its involvement in the conduct, before the investigation started)
- BT (6 infringements between August 2014 and September 2021) – £1,738,453 (includes a 15 percent leniency discount and a 20 percent settlement discount)
- IMG (6 infringements between April 2016 and October 2021) – £1,737,820 (includes a 40 percent leniency discount and a 20 percent settlement discount)
- ITV (5 infringements between March 2014 and May 2018) – £339,918 (includes a 42.5 percent leniency discount and 20 percent settlement discount)
- BBC (3 infringements between July 2016 and October 2021) – £424,165 (includes a 20 percent settlement discount)
A separate investigation into non-sports production and broadcasting firms has also been closed. The CMA had been looking at the BBC, Hartswood Films, Hat Trick Productions, ITV, Red Planet Pictures, Sister Pictures and Tiger Aspect Productions.
The authority said it had “considered a wide range of factors in making this decision”, including the conduct of employers, changes in industry practices and the fact that its investigation into pay fixing among the sports broadcasting and production firms will act as a deterrent.
As a result the CMA has highlighted its concerns to the businesses under investigation so they can take appropriate action to ensure legal compliance.
The CMA added that it “has not reached a decision as to whether competition law has been broken and no assumption should be made that it has”.
The authority will publish further guidance for employers on how to avoid anti-competitive behaviour in labour markets in the coming months.
