In light of a recent case from the Competition and Markets Authority (CMA),  in which four sports broadcasters and production companies were fined over £4 million for colluding on freelancer pay rates, we wanted to share some valuable lessons, drawing out why competition rules matter and how to ensure your business stays on the right side of the law.

Understanding the CMA’s recent freelancer pay investigation

The CMA investigation found that companies broke competition law by sharing sensitive information about freelancer pay rates, on 15 occasions. This information-sharing took place between pairs of the companies (two out of the five parties we investigated). In the majority of instances, the companies did so with the explicit aim coordinating on freelance pay. We saw discussions about avoiding “bidding wars” and presenting a “united front” on rates.  You can read more about the case here.

Our Commitment to Supporting Compliance

The CMA recognises that the majority of businesses want to do the right thing, to operate lawfully and ethically.  Our enforcement action targets deliberate wrongdoing, but we equally focus on providing guidance to help fair dealing businesses navigate the law.

For practical resources designed specifically for businesses like yours, I recommend visiting the CMA’s “Cheating or Competing” campaign page.  At the CMA we are also developing additional guidance for employers on this specific aspect of competition law to provide further clarity for businesses – watch out for that later this year.

So, what can you take away from the case now?  Here are some top tips to help ensure you don’t fall foul of competition law, including when it comes to recruiting and retaining workers.

1. Always determine prices, wages, and business strategies independently

Companies should set their prices and their wages independently of each other so that what consumers pay for their goods and services, and what the companies pay their workers are both competitive – not doing so could leave consumers or workers out of pocket.

In the sports broadcasting case, one company told another they had “no intention of getting into a bidding war” but “want to be aligned and benchmark the rates.” Another wanted to “present a united front” with competitors.

Be alert to conversations or email exchanges that could cross legal boundaries, including discussions about your prices, or what you pay your workers.

2. Ensure employees who interact with competitors understand competition law basics.

Breaches can happen through casual conversations, face-to-face or online involving staff who may not fully appreciate the legal implications of what they are discussing.

Regular training for employees in sales, purchasing and HR and similar roles, as well as those in management positions, is important to help avoid crossing the legal line.

3. Prepare for industry meetings

Industry get-togethers or trade association events are valuable networking opportunities, but some simple safeguards are helpful:

• Request detailed agendas in advance
• Keep records of discussions and your participation
• Exit conversations that venture into competitively sensitive territory, such as discussing respective commercial strategies, explain why you are doing so, and make a note that you have done so.

4. Create a culture of compliance led from the top

Business owners should have regular conversations with staff on why fair competition matters, develop a simple competition law compliance policy appropriate to your business size, and share the CMA’s compliance materials with all staff.  Have a culture where staff are unafraid to report concerns about possible law breaches. 

5. If you discover potential competition law issues in your business, act quickly

In the sports broadcasting case, one business avoided fines completely by being the first to report its involvement in the wrongdoing to the CMA.

The first business to report illegal activity to the CMA, under the CMA’s leniency policy, can get a 100% discount on fines, and can avoid debarment risk (under the new Procurement Act) as well as the disqualification of company directors.

6. Be clear on how to report to the CMA

If you witness or suspect another business breaking the law:

• call the CMA on 020 3738 6888
• email [email protected]

If you’ve been involved:

• come forward to the CMA, you may get leniency
• call the CMA on 020 3738 6833 for confidential guidance.
• get independent legal advice

Remember, competition law compliance isn’t just about avoiding penalties – it creates a business environment where companies can succeed on a level playing field, driving innovation and delivering better outcomes for everyone in the economy.

By keeping your business decisions independent and competitive, you contribute to a more dynamic, innovative marketplace.