The European Commission yesterday adopted new draft rules that would give complete immunity to the first company to report an undetected cartel.

The Commission said in a statement that the draft rule, which it expects to be adopted in final form by the end of the year, aims to attract more participants in cartels to blow the whistle on their co-conspirators.

"Complete immunity would be granted to the first firm to inform the Commission of an undetected cartel," the Commission said in a statement about companies that conspire to fix prices or carve up territory.

As matters stand, the first company to report an undetected cartel may get a large reduction in its fine, but there are no guarantees. Under the new rules, a company would know at the beginning of the process that it was to receive complete immunity, the Commission said.

Other firms giving the Commission useful information would also continue to be eligible for some cuts in fines.