Broadcasters BBC, ITV, BT and IMG Fined £4.2m for Illegal Freelancer Payment Information Sharing
Leading broadcasters BBC and ITV, alongside telecommunications firm BT (formerly a sports broadcaster), and production company IMG, have been collectively penalised £4.2 million for unlawfully exchanging information regarding payments to freelance staff. The fines, issued by the Competition and Markets Authority (CMA), relate to breaches of competition law affecting workers such as camera operators and sound technicians at football and rugby events.
CMA Investigation Uncovers Anti-Competitive Conduct
The regulator initiated an inquiry into potential cartel-like behaviour in 2022, prompted by a tip-off from Sky. Sky, a significant broadcaster of Premier League football, was identified as the most persistent offender, with 10 instances of anti-competitive behaviour. However, Sky avoided financial penalty by proactively disclosing the illegal practices to the CMA.
Freelancers’ Pay Undermined by Information Exchange
The CMA investigation revealed that producers at the implicated broadcasters shared confidential payment details with each other. This practice aimed to control and limit pay for freelance workers, who are vital to the television industry. The CMA stated that the “explicit aim” in most cases was to coordinate freelancer pay rates between 2014 and 2021.
Evidence of Collusion to Suppress Pay
Internal communications uncovered by the CMA demonstrated a clear intention to avoid competitive pay offers. One business communicated to another their “no intention of getting into a bidding war” and a desire to “align and benchmark the rates.” Another company expressed the wish to present a “united front” with a competitor regarding freelancer compensation.
Financial Penalties Breakdown
BT, which has since ceased sports broadcasting, will pay the largest fine of £1.7 million for six breaches. IMG will also pay £1.7 million, while the BBC is fined £424,000, and ITV £340,000. All companies received reductions to their penalties for early settlement of the case.
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CMA Emphasizes Fair Compensation and Independent Rate Setting
Juliette Enser, the CMA’s executive director for competition enforcement, stated: “Millions watch sports on TV every day, made possible by production teams working behind the scenes, and they deserve to be paid fairly.” She added, “Companies must set pay rates independently to ensure competitive compensation. анти-competitive practices undermine fair pay and employers must ensure compliance with competition law.”
Separate Investigation into Production Companies Concluded Without Findings
The CMA confirmed the closure of a separate investigation into broader production companies, beyond sports broadcasting. The regulator stated it had not reached a conclusion regarding potential anti-competitive conduct in this separate inquiry.
Companies Under Separate Investigation:
- BBC
- Hartswood Films
- Hat Trick Productions
- ITV
- Red Planet Pictures
- Sister Pictures
- Tiger Aspect Productions
Broadcasters Respond to CMA Findings
All implicated sports production companies were contacted for comment on the CMA’s decision.
A BBC spokesperson affirmed the organisation’s commitment to competition law, stating: “The BBC takes its competition law obligations seriously and cooperated fully with the CMA throughout its investigation. We highly value our freelance workforce.”
A Sky spokesperson stated: “Sky takes compliance with competition law extremely seriously. Upon becoming aware of the issue, we proactively notified the CMA and cooperated fully with their investigation. We accept their findings and have strengthened internal policies and procedures to ensure ongoing compliance.”
ITV declined to provide a comment.