In 2013, the Competition and Markets Authority (CMA), which is a non-ministerial department, was established with the purpose of promoting competitive markets and tackling unfair behaviour.
As an authority, it also plays a significant role in helping to determine if a proposed merger or acquisition could limit consumer choice.
Freelancer Pay Investigation by the CMA in 2024
Earlier this year, the CMA reported its findings on the application of freelancer pay. An investigation began following Sky Broadcasting Unit’s report of itself to the CMA regarding freelance worker payment practices. Their workers included roles such as camera operatives, sound technicians, and producers.
Companies Involved in the CMA Pay Coordination Case
The working practices of other organisations such as BT, ITV, IMG, and the BBC were also investigated. Ultimately, the CMA found that there was a common practice among these five organisations of sharing freelancer rates of pay with the aim of aligning pay rates. They were coordinating amongst themselves in determining how much to pay freelancers.
Evidence of Pay Rate Alignment and Rate Benchmarking
In the report, the CMA shared many examples of communications between the five organisations, which, were ultimately competitors. One example stated:
“We’re thinking some rates might need adjusting for 22/23 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. Also sick of being told we are not paying what others are which I inherently distrust.”
CMA Cartel Finding and Fines Imposed
Ultimately, the CMA found that these organisations effectively operated as a cartel. As Sky came forward to report themselves, they escaped a fine. However, BT, ITV, IMG, and the BBC were collectively fined £4,240,356.
Their fines were lower than they should have been, because once Sky came forward, the remaining organisations voluntarily disclosed their involvement and supported the investigation.
The breakdown of this combined fine is:
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BT fined £1,738,453, based on a 15% leniency discount and a 20% settlement discount
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IMG fined £1,737,820, which includes a 40% leniency discount and a 20% settlement discount
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ITV fined £339,918, that includes 42.5% leniency discount and 20% settlement discount
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BBC fined £424,165, which includes a 20% settlement discount
This case serves as a powerful reminder that transparent, fair, and compliant payroll practices are not just operational necessities—they are fundamental to maintaining trust, avoiding legal risk, and upholding the integrity of competitive markets.
