UK Sports Broadcasters Fined £4.2M for Illegal Sharing of Freelancer Pay Information

Key Takeaways

• Breach of Competition Act 1998: Five major UK broadcasting companies (Sky, BT, IMG, ITV, and BBC) violated competition laws by sharing freelancer pay information for sports productions and broadcasts.
• Impending Investigation & Decision: The CMA identified 15 instances of illegal information-sharing from 2014-2021 and handed down an infringement decision to the companies with fines totaling more than £4M collectively.
• Leniency Benefits for Cooperation: Sky received immunity from fines for coming forward to report illegal activity before the investigation began, and the other four companies were given varying penalty reductions based on cooperation.

Deep Dive

The UK's Competition and Markets Authority (CMA) reported on Friday that they had issued an infringement decision for violations under the Competition Act 1998 to five UK broadcasting companies that produce and broadcast sports content. The decision comes following a nearly three-year-long investigation into illegal sharing of information relating to freelance labor. Along with the decision, the companies will be fined more than £4M collectively.

The CMA handed down the decision and subsequent fines after finding 15 individual infringements of competition law regarding the acquisition of and rate of pay for freelance workers in sports broadcasts and productions. The companies involved are among the largest sports broadcast and production companies in the UK—Sky, BT, IMG, ITV, and BBC.

The investigation began in July 2022 when Sky notified the CMA of its involvement in the illegal activity as a provision of the CMA's leniency policy, making Sky immune to any fines as a result of the investigation. The other four companies have agreed to pay fines that together amount to £4.2M, which includes discounts those companies received for their cooperation in the investigation. BT, IMG, and ITV each received a specific discount for coming forward to admit their involvement in the case when they became aware of the investigation.

The CMA determined in its investigation that all five companies had hired freelancers for jobs across 20 different roles, including camera and other equipment operators, sound staff, and production directors. Each of the 15 instances found involved a pair of one of the five companies where they had illegally shared information with each other concerning pay for freelance work, including daily rates and pay increases. The CMA further found that in many of those instances, the direct goal of sharing this information was to coordinate pay to freelance workers between both parties.

In regard to the decision, Juliette Enser, the CMA's Executive Director for Competition Enforcement, stated:

"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."

In its investigation, the CMA found the following for each of the five companies:

• Sky committed 10 infringements from March 2014 to January 2021 and will receive no fines as they came forward to report their illegal activity before the investigation had begun
• BT committed 6 infringements from August 2014 to September 2021 and will be fined £1,738,453, which includes a leniency discount and a settlement discount of 15% and 20%, respectively
• IMG committed 6 infringements from April 2016 to October 2021 and will be fined £1,737,820, which includes a leniency discount and a settlement discount of 40% and 20%, respectively
• ITV committed 5 infringements from March 2014 to May 2018 and will be fined £339,918, which includes a leniency discount and a settlement discount of 42.5% and 20%, respectively
• BBC committed 3 infringements between July 2016-October 2021 and will be fined £424,165, which includes a settlement discount of 20%

The CMA also reported that it is currently conducting a similar but separate investigation concerning non-sports TV production and broadcasting and that while it has yet to reach a decision, one should be coming soon.

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