The UK’s Competitive Markets Agency has released new guidance highlighting lessons from a groundbreaking study of UK sports broadcasters. It uses a penalty case of £4.2 million ($5.7 million) as a tool for employers to navigate labor market competition laws.
A CMA case study released Tuesday looked into whether BBC, ITV, BT and IMG were fined earlier this year for illegally adjusting the pay rates of freelancers, and Skye avoided penalties by working with investigators. Authorities use the investigation of conclusions to explain how businesses can avoid similar violations.
The original March survey revealed that five companies shared 15 competitive information on the rates they are working on major football games and rugby tournaments with freelance camera operators, sound technicians and producers.
According to the case study, “We pay £(x) per day per day” Answer: “That’s exactly the same as what we pay. It’s good to know that we have it there.”
Other communications indicated explicit coordination attempts involving one WhatsApp message. “We may need to adjust it to 2022/23, but we would like to adjust it, and we want to clarify it.
The CMA highlights three important lessons from the case. Companies need to set wage rates independent of their competitors. Business leaders need to promote a culture of competition law compliance. And full cooperation with the investigation could reduce or eliminate penalties.
“It is illegal to share or exchange competitive, sensitive information with competitors, such as wage rates,” the guidance states, urging businesses to ensure that recruitment teams understand what constitutes anti-competitive behaviour.
Case studies occur when CMAs prepare to publish additional guidance to employers to avoid anti-competitive practices in the labour market. Authorities point out that fair competition for talent is essential for both the welfare of workers and business growth, as there are many freelancers in the creative industry.
BT, IMG, ITV and the BBC ultimately paid a total of £4.2 million fine, admitting fraud and reducing the amount of companies that cooperated under the tolerance programme. Sky was fully immunized for telling her involvement with the CMA before the investigation began.
A BBC spokesperson said: “The BBC has taken competition law obligations seriously and has worked with the CMA through investigations that include many sports broadcasters.
“The BBC has engaged in three of the 15 infringements identified by the CMA and has acknowledged these liability as soon as possible.
“We value the freelancers we work with both in sports and the BBC as a whole. We will continue to work with our freelance community and continue to invest and develop our talent.”
