BBC, ITV, BT Sport and Sky among broadcasters fined for breaking the law

The UK's prominent sports broadcasters have incurred fines totalling over £4m for engaging in illegal collusion to fix the pay rates of freelancers.

Heavy-hitters such as BT, IMG, ITV and the BBC have all conceded to unlawfully exchanging confidential payment information and specifics aimed at suppressing production staff salaries, as reported by City AM.

Sky managed to dodge a financial blow by proactively disclosing its role prior to the probe initiated by the Competition and Markets Authority (CMA).

According to the CMA, from 2014 to 2021, these major media entities participated in at least 15 instances of illicit information swapping to deliberately keep freelancer pay low, thus stifling service competition.

Internal communications within each company exposed direct conversations about preventing bidding wars and coordinating rates.

With regards to penalties, both IMG and BT have been meted out fines of around £1.74m each, whereas the BBC and ITV are facing fines of £339,918 and £424,165, respectively.

Skirting any sanctions under the CMA's leniency policy, Sky was exempt due to its early disclosure.

Companies coming forward to the CMA were afforded reduced fines in exchange for their collaboration with the agency.

Juliette Enser, CMA's Executive Director for Competition Enforcement, emphasized that businesses should independently decide on remunerations to promote equitable pay.

She remarked: "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."

The decision is anticipated to result in greater transparency regarding payment practices in the sector.

Additionally, the CMA has concluded a separate probe into the broader TV production market, which included ITV, the BBC, and various independent producers.

Although no penalties have been imposed at this stage, the regulatory body has cautioned firms to adhere strictly to competition laws.