Chiquita tipped off EU on possible fruit price fixing

Fresh fruit group Chiquita said yesterday that it tipped off the European Commission about possible price fixing on the European…

Fresh fruit group Chiquita said yesterday that it tipped off the European Commission about possible price fixing on the European banana and pineapple market.

Officials from the Commissions's competition directorate raided the offices of European fruit companies, including Fyffes, this week on foot of the tip-off. The offices of Chiquita, Dole and Fresh Del Monte were also raided.

Chiquita said it approached the Commission after management discovered that "certain of its employees had shared pricing and volume information over many years with competitors in Europe".

In return, the Brussels regulator has granted Chiquita immunity from possible cartel fines. If found guilty of running a cartel, the group's rivals could face financial penalties worth up to 10 per cent of their global annual turnover. Fyffes is forecast to turnover around €1.9 billion this year.

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Dole and Fresh Del Monte, the US fruit groups, and Fyffes, the Dublin-based fruit and vegetable distributor, confirmed they had been among the companies raided on Thursday. Fyffes said in a statement that the "visit related to a wider inquiry that included all of Fyffes' principal competitors".

The Commission, which recently declared the fight against cartels one of its biggest priorities, said its officials had searched premises in Ireland, Britain, Germany and Belgium.

A spokesman for the Brussels regulator said: "The Commission has reason to believe that the companies concerned may have violated Article 81 of the EC Treaty, which prohibits price-fixing and market-sharing practices." He stressed that the raids did not prejudge the outcome of the inquiry, which could last several years.

In a statement issued by Chiquita yesterday, the group said it had "promptly stopped" all practices that may have violated European competition laws.

The group's decision to turn to the Commission and request immunity comes as fresh vindication of the regulator's drive to encourage more whistleblowers to step forward. Brussels introduced a more generous immunity scheme three years ago, and has since experienced a surge in companies keen to pass on information about cartels.

According to figures released last November, 93 whistleblowers have come forward since the new rules were introduced - eight times more than in the preceding six years.