Law firm urges recruiters to get “houses in order” before freelancers and CMA take action over pay collusion

Sports broadcast and production companies, including the BBC, BT, IMG, and ITV, have been fined over £4 million after admitting to collusion on freelance pay rates. Sky avoided a fine by reporting their involvement to the Competition and Markets Authority (CMA) before the investigation began.

The CMA’s investigation revealed that these companies shared sensitive information about pay rates for freelance workers, such as camera operators and sound technicians, on 15 separate occasions. The aim, in many cases, was to coordinate pay, with one company stating they had “no intention of getting into a bidding war” but “want to be aligned and benchmark the rates.” Another company expressed a desire to “present a united front” with a competitor.

The total fines, which take into account discounts for cooperation and settlement, amount to £4,240,356. The specific fines according to the CMA 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) 

The CMA emphasised that businesses that report cartel activity and cooperate with investigations may receive reduced or no fines. Sky received no fine due to their early reporting of the misconduct.

Freelancers may take legal action

“Many disgruntled freelancers and contractors will have seen this story (which was headline news on the BBC website), and many may be tempted to mount actions or make complaints on the back of this to the CMA, so any organisation which is involved in collaborating with competitors about pay rates, or helps hirers set those rates, should take immediate steps to make sure their house is in order: competition law fines can be very high,” said law firm Osborne Clarke in a statement.

The law firm also stated, “Staffing companies, MSPs and RPOs which advise a range of companies and help all those companies set rates (perhaps related to attempts to keep rates down while the economic outlook is so uncertain) may be particularly at risk.”

Non-sports TV production and broadcasting 

The CMA has also reported 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. 

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.

Bectu, the creative industries union, said following CMA’s announcement, “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.”

The CMA will publish further guidance for employers on avoiding anti-competitive behaviour in labour markets in the coming months.

Get access to news and career tips you can’t get anywhere else. Sign up for the Freelance Informer newsletter: