An investigation by the Competition and Markets Authority (CMA) found some of the largest sports broadcast and production companies in the UK shared sensitive information about fees for freelance workers such as camera operators and sound technicians. Four companies – BT, IMG, ITV and BBC – have agreed to pay fines totalling £4,240,356.
These fines take into account discounts received by all four companies because they admitted to breaking the law and settled the case. For BT, IMG and ITV the fine is also lower than it would have been because, after 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 the CMA to its involvement, before the investigation had been launched.
The five companies investigated by the CMA often engaged freelancers to assist with the production and broadcasting of sports content such as major football games and rugby tournaments. The CMA found 15 instances where a pair of companies unlawfully shared sensitive information about pay with each other, including on day rates and pay rises.
In most cases, the explicit aim was to coordinate how much to pay freelancers. For example, on one occasion a business told another they have “no intention of getting into a bidding war” but “want to be aligned and benchmark the rates”. In a separate instance, a company said they wanted to “present a united front” with its competitor.
Juliette Enser, Executive Director for Competition Enforcement, 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.
A business which has participated in cartel activity may receive total immunity or a reduction in fines if it comes forward with information about the conduct and fully cooperates with the CMA. This helps the CMA detect illegal activity which often happens in secret and deliver an investigation more quickly and robustly. In this case, 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% 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)
Non-sports TV production and broadcasting
The CMA has also announced today that it is closing a separate investigation relating to non-sports TV production and broadcasting. The companies under investigation were BBC, Hartswood Films, Hat Trick Productions, ITV, Red Planet Pictures, Sister Pictures and Tiger Aspect Productions.
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. The CMA has not reached a decision as to whether competition law has been broken and no assumption should be made that it has. In addition, the CMA will publish further guidance for employers on how to avoid anti-competitive behaviour in labour markets in the coming months.
Notes to editors:
-
The CMA has found each of the 15 infringements to be a ‘by object’ infringement in its sports broadcasting and production investigation (i.e. that the conduct had, as its object, the prevention, restriction or distortion of competition within the UK). The CMA has not made any finding as to whether the conduct at issue had the effect of preventing, restricting or distorting competition.
-
Under the CMA’s leniency policy, a business that has been involved in cartel activity may be granted immunity from penalties or a reduction in penalty in return for reporting the cartel activity and assisting the CMA with its investigation.
-
A party under investigation by the CMA may enter into a settlement agreement if it is prepared to admit that it has breached competition law, is willing to pay a fine and agrees to a streamlined administrative procedure for the remainder of the investigation.
-
BT no longer operates in the sports broadcasting market in the UK.
-
The CMA and Ofcom have concurrent functions to enforce competition law in relation to activities connected with communications matters. It was agreed that the CMA would exercise those functions in relation to these investigations.
-
The CMA’s guidance and other materials seek to boost business compliance and remind employers of their legal obligations to avoid unlawful collusion when it comes to employee pay, working conditions and the hiring of staff. Updated guidance will be published in the coming months to help employers avoid illegal anti-competitive behaviour in labour markets.
-
Further information about the sports broadcasting and production as well as non-sports TV production and broadcasting investigations can be found on their case pages.
-
For media enquiries, contact the CMA press office on 020 3738 6460 or [email protected]
