Cartel snitches get offer of impunity

The European Commission has stepped up its war on price-fixing cartels by announcing that anybody who dishes the dirt on such a scam will be given impunity.

The news will raise concerns among Europe's mobile phone operator who have already come under scrutiny over allegations of price-fixing for overseas roaming prices.

The offices of operators such as BT Cellnet, Orange and Vodafone were raided last week in a pan-European investigation into the alleged cartel.

Now the powers-that-be have turned up the heat by encouraging members of any cartel to break rank and dodge any future prosecution. The first company to blow the whistle on a cartel will receive complete impunity while co-operating companies may lessen the nature of their punishment.

The offer should prove tempting as Brussels has the power to impose potentially crippling punishments, including a fine of up to 10 per cent of annual turnover. Such a fine could be too much for mobile operators to risk as they struggle to recover the huge sums spent on 3G licences.