CMA: Sky, BBC, ITV, BT & IMG pay sharing behaviour wasn’t “isolated”

The Competition and Markets Authority believes that sharing sensitive information about freelancer pay rates wasn’t an isolated issue, after fining the BBC, ITV, BT and IMG for doing so.

The CMA’s executive director for competition enforcement, Juliette Enser, has told Broadcast Sport that, “It’s not right to say it’s an isolated issue,” during the seven years, 2014-2021, that the CMA’s investigation examined. Enser added that the investigation found, “communications between pairs of businesses,” which, “were exchanging information with the express aim of aligning rates.”

However, she hopes the behaviour isn’t ongoing, stating that, “We typically expect opening an investigation will see companies put their house in order.”

The CMA fined the BBC, ITV, IMG and BT a combined £4,240,356 for sharing sensitive information about freelancer pay rates. 

Sky was also been found to have taken part, but was spared a fine as it reported the issue to the CMA before the investigation was opened. BT, IMG and ITV’s fines were also lowered as they assisted the investigation once it started. 

The investigation began in 2022, with IMG subject to an, “on-site inspection,” at the time.

The investigation 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 adds that, “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.”

The CMA has made no assertions as to whether these efforts did successfully affect wages. 

Bectu chief Philippa Childs has called on broadcasters to work on regaining the trust of freelancers: “Freelancers are a critical resource for UK broadcasters and it’s completely unacceptable that a number have admitted to collusion on rates of pay. Today’s announcement from the CMA is a damning indictment of the behaviour of some broadcasters. It must be stressed how this behaviour directly impacts the freelancers on which broadcasters rely.

“None of us would be able to watch the sports we love on TV without the dedicated freelancers working hard behind the scenes. They must be compensated fairly for their time and skills. This would best be achieved via collective agreements, an approach the CMA has indicated it would also support.

“It’s entirely right that the broadcasters involved have been fined, but they should also consider how to regain the trust of their freelance workforce who work in sport. Bectu research indicates that a large number of freelancers working in outside broadcasting are unhappy with their working conditions and work/life balance.

“Bectu calls on broadcasters and Pact to come to the table and negotiate with the union on freelancer rates to ensure fair and transparent pay, which would act as an important starting point to address some of these wider issues.”

The CMA has also concluded a similar investigation into non-sport broadcasting issues, finding that a preferred response in that case is to work with the companies on ensuring they are complying with the law.