Wednesday, 13 July 2022

Media Guardian: CMA investigates sport broadcasters over ‘cartel-like behaviour’

Story from Media Guardian:

The competition watchdog is investigating possible cartel-like behaviour by sport broadcasters including BT Group, ITV, Sky and IMG Media, which includes Premier League Productions, around the purchase of freelance services.

The Competition and Markets Authority said it believes there are “reasonable grounds to suspect one or more breaches of competition law”.

The Competition and Markets Authority said: “The investigation relates to the purchase by such companies of freelance services, which support the production and broadcasting of sports content in the UK.”

The watchdog is investigating the broadcasters under section 25 of the Competition Act 1998, which allows the Competition and Markets Authority to look into potential cartels.

It can take further action if it believes there have been any agreements between companies that could prevent, restrict or distort competition.

The Competition and Markets Authority said it had not yet reached a view on whether there was sufficient evidence of an infringement of competition law for it to take further action, such as issuing a statement of objections, and not all cases result in more action being taken.

The watchdog said no assumptions should be made at this stage over whether the companies have breached competition law.

A Sky spokesman said in response: “We are cooperating fully with the Competition and Markets Authority.”

ITV said in a statement to shareholders that it is “committed to complying with competition law” and cooperating with the Competition and Markets Authority’s inquiries.

The broadcaster said it does not propose commenting further on the investigation at this stage.

A spokesperson for BT Group said it noted the Competition and Markets Authority statement and is “reviewing the details while cooperating fully with their team”.

They said: “It is clear that the Competition and Markets Authority’s investigation is focused very specifically on the purchase of freelance services and not any other aspects of the BT Sport or wider BT Group business.”

IMG confirmed it has “been the subject of an inspection by the Competition and Markets Authority”.

A company spokesperson said it was cooperating with the Competition and Markets Authority and would not make any further comment at this time.

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