No hiding for Europe's price-fixers

EUROPEAN company executives have nowhere to hide from Brussels' officials as new powers come into force giving cartel-busters the right to search company directors' private homes.

Search powers being given this month to the European Commission will close a loophole that let company bosses on the Continent hide potentially incriminating evidence of price-fixing from competition authorities.

Britain's bosses already face scrutiny under the Enterprise Act of 2002, which allows the Office of Fair Trading to sift through staff homes and vehicles, but the Commission's policing powers in mainland Europe were until now confined to places of work.

Stephen Kinsella of City solicitors Herbert Smith believes the recent crackdown on cartels means executives would have been more likely to keep notes at home of any conversations they would have had with directors asking them to engage in price-fixing.

'It is human nature to cover your back so that if there is any investigation they do not want to be the fall guy and let the bosses off on a frolic,' he said.

The Commission's biggest price-fixing fine was e462m (£312m) imposed on Switzerland's Hoffman-La Roche for leading a vitamin cartel.