Sky, BT, IMG, ITV and the BBC have admitted to breaking the law after colluding on the rates of pay for freelancers.
An investigation by the Competition and Markets Authority (CMA) found found that broadcasters and production companies had shared sensitive information about fees for freelance workers, including camera operators and sound technicians.
Four companies – BT, IMG, ITV and BBC – have agreed to pay fines totalling £4,240,356.
CMA said that the fines take into account discounts, because all of them admitted to breaking the law and settled the case.
BT, IMG and ITV received lower fines because when they became aware of the investigation, they came forward about their involvement and assisted the CMA in its investigation under its leniency programme.
Sky is exempt from a financial penalty as it alerted CMA to its involvement, before the investigation had been launched.
“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,” said Juliette Enser, Executive Director for Competition Enforcement.
“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 stated that the 5 companies often employed freelancers to assist with sports production and broadcast. It found 15 instances where a pair of companies unlawfully shared sensitive information about pay with each other, including on day rates and pay rises.
It said that in most cases, the explicit aim was to coordinate how much to pay freelancers.
It gave one example where a business told another “they have ‘no intention of getting into a bidding war’ but ‘want to be aligned and benchmark the rates’.”
In another it said they wanted to “present a united front” with its competitor.
A business which has participated in cartel activity can receive total immunity, or a reduction in fines, if it comes forward with information about it and then fully cooperates with the CMA.
Broken down by company:
- 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% leniency discount and a 20% settlement discount)
- IMG (6 infringements between April 2016 and October 2021) – £1,737,820 (includes a 40% leniency discount and a 20% settlement discount)
- ITV (5 infringements between March 2014 and May 2018) – £339,918 (includes a 42.5% leniency discount and 20% settlement discount)
- BBC (3 infringements between July 2016 and October 2021) – £424,165 (includes a 20% settlement discount)
Separately, the CMA has also revealed that it’s closing a separate investigation into non-sports television production and broadcasting. The companies under investigation were BBC, Hartswood Films, Hat Trick Productions, ITV, Red Planet Pictures, Sister Pictures and Tiger Aspect Productions.
It stated:
“The CMA keeps its portfolio of cases under constant review to ensure its resources deliver the most timely and impactful outcomes. It has considered a wide range of factors in making this decision, including the companies’ conduct, changes in industry practices and the deterrent effect from its sports broadcasting and production investigation.
“It considers that a more proportionate way of resolving the non-sports TV production and broadcasting case is to highlight its concerns to the businesses under investigation so they can take appropriate action to ensure they are complying with the law.”
It added that it had “not reached a decision as to whether competition law has been broken and no assumption should be made that it has.”
