The Statement of Objections from the EC follows searches carried out by the European Commission in June 2005 at certain banana importers' European offices, and could result eventually in huge fines for the companies.

According to reports, the action targets Dole, Fyffes, Chiquita, Del Monte, Noboa and other key players in the market.

The European Commission has not commented on the allegations.

A Statement of Objections is a procedural step in the EC's antitrust investigation, in which the commission communicates its preliminary view with respect to a possible infringement of European Union competition laws. Responses are then reviewed before the determination of whether to issue a final decision, which is subject to appeal to both the European Court of First Instance and the European Court of Justice.

Dole confirmed that the Statement of Objections had been adopted against one of the company's subsidiaries but said it would strongly dispute the allegations.

"The company strongly disputes the European Commission's allegations of anti-competitive behavior and believes that Dole has not violated the European Union competition laws," said Michael Carter, executive vice president, general counsel and corporate secretary.

"Dole is proud of its reputation as one of the world's most ethical companies and will continue to cooperate with the European Commission in order to provide the Commission with a full and transparent understanding of the banana market," he added.

Ireland's Fyffes also confirmed it had received the Statements of Objections following EC inspections carried out at the premises of Fyffes and subsidiary Weichert in early June 2005. The company said it had fully complied with all requests.

Fyffes and Weichert said they would examine the preliminary findings and respond in due course.

The banana industry has been dogged with controversy, with questions raised over the conduct of certain producers in growing areas such as South America. A three-year US Department of Justice investigation into Chiquita's dealings in Colombia focused on payments made by the company to certain groups in Colombia designated under US law as foreign terrorist organizations.

The banana supplier pleaded guilty to making the payments through its Colombian subsidiary, but said it was "forced" to make payments to right- and left-wing paramilitary groups in Colombia to "protect the lives of its employees".