The U.K. Competition and Markets Authority has published new guidance highlighting lessons from its landmark investigation into British sports broadcasters, using the £4.2 million ($5.7 million) penalty case as a tool for employers navigating competition law in labor markets.
The CMA’s case study, released on Tuesday, examines how BBC, ITV, BT and IMG were fined earlier this year for illegally coordinating freelancer pay rates, while Sky avoided penalties by cooperating with investigators. The authority is using the concluded investigation to illustrate how businesses can avoid similar violations.
The original March investigation revealed that the five companies shared competitively sensitive information on 15 occasions about rates paid to freelance camera operators, sound technicians and producers working on major football games and rugby tournaments.
“We pay our Studio Vision Mixers £(X) per day for a 10x hour shift,” read one email between competitors, according to the case study. The response: “That’s exactly the same as we pay. Good to know we are aligned there.”
Other communications showed explicit coordination attempts, including one WhatsApp message stating: “We’re thinking some rates might need adjusting for 2022/23 but want to be aligned. Wanted to be clear we have no intention of getting into a bidding war just want to be aligned and benchmark the rates.”
The CMA emphasizes three key lessons from the case: companies must set pay rates independently of competitors; business leaders must promote competition law compliance culture; and full cooperation with investigations can reduce or eliminate penalties.
“Sharing or exchanging competitively sensitive information with competitors, such as rates of pay, is illegal,” the guidance states, urging companies to ensure recruitment teams understand what constitutes anti-competitive behavior.
The case study comes as the CMA prepares to publish additional guidance for employers on avoiding anti-competitive practices in labor markets. The authority notes that with high numbers of freelancers in creative industries, fair competition for talent is essential for both worker welfare and business growth.
BT, IMG, ITV and BBC ultimately paid the combined £4.2 million in fines, with amounts reduced for companies that admitted wrongdoing and cooperated under the leniency program. Sky received complete immunity for alerting the CMA to its involvement before the investigation launched.
A BBC spokesperson said: “The BBC takes its competition law obligations seriously and has co-operated with the CMA throughout its investigation, which involved a number of sports broadcasters.
“The BBC was involved in three of the 15 infringements identified by the CMA and admitted liability for these as soon as possible.
“We highly value the freelancers we work with, both in sport and across the BBC, and we will continue to work hard with the freelance community to invest in, and develop, talent.”
Source: BBC, ITV, BT and IMG Case Study: U.K. Watchdog Highlights Lessons From $5.7 Million
