Insights CMA fines sports broadcast and production companies £4 million and closes competition investigation into the hiring of freelance labour in the TV production sector citing compliance efforts from industry players

The CMA has concluded two investigations into alleged anti-competitive behaviour involving the purchase of freelance labour in UK’s production and broadcasting sector -one involving sports broadcast and production companies and the other involving non-sports broadcasting and TV production companies –  bringing an end to lengthy probes that had cast a shadow over the sector.

Non-sports TV production investigation

The non-sports TV production related investigation focused on whether several broadcasters and production companies, including the BBC, ITV, and a number of UK TV production companies, had exchanged competitively sensitive information relating to pay rates and working conditions for freelance and employed staff. The CMA has now closed the investigation and confirmed that it will not be pursuing the case further, citing a shift in its administrative priorities and acknowledging that the investigation no longer justifies the continued allocation of resources.

The CMA stated it has not reached any decision on whether competition law was infringed, and that no conclusions should be drawn about any wrongdoing of those involved. Instead, the regulator has pointed to broad “positive changes in industry practices” and enhanced compliance measures adopted by those under investigation as a key part of its rationale for stepping away.

While the CMA maintains that it could revisit the matter in the future, today’s decision ends an investigation that had created prolonged uncertainty for many in the industry and caused huge amounts of disruption — albeit without delivering any formal outcome.

The decision will obviously be very welcome by industry, particularly given the significance of the UK’s television and film sector as a cultural force and a major economic contributor. With thousands of jobs supported across the country and billions added to the UK economy, the industry has continued to remain resilient post-pandemic despite the increased scrutiny and uncertainty caused by the investigation.

The CMA has said it will issue further guidance for employers on avoiding anti-competitive behaviour in labour markets, but for now the message is clear: the regulator has decided to roll the credits on its investigation and the industry can now move on.

See here for the CMA’s case closure statement.

Sports TV production investigation

The conclusion of the CMA’s case involving sports broadcasting had a firmer outcome. The regulator issued an infringement decision to five companies – BBC, BT, IMG, ITV and Sky—finding that they had unlawfully exchanged competitively sensitive information on freelance pay on multiple occasions during a seven-year period.

The CMA identified 15 separate instances of unlawful information sharing between pairs of companies, often with the explicit aim of coordinating pay for freelance roles across a wide range of production positions, including camera operators, sound technicians and directors.

BT, IMG, ITV and the BBC have agreed to pay fines totalling around £4.2 million, while Sky received full immunity from financial penalties after alerting the CMA to the conduct before the investigation began. The fines reflected significant discounts under the CMA’s leniency and settlement regimes. IMG received the largest leniency reduction – 40% – alongside a 20% settlement discount, resulting in a fine of £1.74 million. BT also benefited from a 15% leniency reduction and a 20% settlement discount, bringing its total fine to £1.74 million. ITV and the BBC received only settlement discounts, paying £339,918 and £424,165 respectively.

See here for the CMA’s update on the sports investigation.

The sports case demonstrates the CMA’s continued focus on ensuring fair competition in labour markets and serves as a clear warning that information-sharing around pay remains a serious enforcement risk. In contrast, the closure of the non-sports TV production case underscores the importance of demonstrating effective compliance efforts and adapting business practices in response to regulatory concerns.

Wiggin assisted one of the TV production companies throughout the non-sports TV production related investigation and has supported efforts to improve the sector’s understanding of the broad reach of the competition rules.