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Vodafone India 'price-fix' probe
Richard Orange, in Mumbai04.04.08
Vodafone has been hit by a cartel probe of its Indian subsidiary, the latest in a string of regulatory difficulties to hit the company in its most rapidly growing new market.
India's competition investigators claim it colluded with India's number one mobile phone operator Bharti Airtel and Idea Cellular to set prices.
Vodafone now risks spending more than a year in the courts of India's Monopolies and Restrictive Trade Practices department.
An inquiry began after the three companies each changed their tariff for local calls to 1.2 rupees (1.5p) a minute within weeks of each other.
"It cannot be mere coincidence the tariff revision is of identical scale," a report said. Vodafone refused to comment.
Vodafone is also battling a $2 billion (£1.06 billion) tax bill India claims it owes after its $11 billion buyout of Hutchison Essar last year.
