Vodafone's Greek arm is fined EU76m

Greece's agency for information security on Thursday imposed a EU76m (£51.2m, $100.5m) fine on Vodafone's Greek operation for failing to prevent the illegal tapping of more than 100 mobile phones, including one used by Costas Karamanlis, prime minister.

Vodafone called the decision "unjustified" and said it would appeal. It said the investigation was incomplete because it had not included Ericsson, the Swedish company that supplied the wire-tapping software.

The watchdog said Vodafone had failed to take adequate measures to protect its network and had not informed subscribers that their phones were being tapped. It said the company had tried to obstruct investigators after the illegal software had been identified.

It said the inquiry would continue. It has asked representatives of Ericsson, which has offered to co-operate, to testify at a later date.

The wire-tapping software was installed in 2004, amid concerns about security for the Athens summer Olympics but was not revealed until more than a year later.

Cellphones used by Mr Karamanlis, Petros Molyviatis, the foreign minister and other government officials were tapped between June 2004 and March 2005, when Vodafone dismantled the software and told the government, according to a parliamentary committee.

The software diverted calls to 16 mobile phones using pre-paid cards, which were located in central Athens.

George Koronias, chief executive at Vodafone Greece, told the parliamentary committee the company had no knowledge of the spyware. Ericsson is Vodafone's main equipment supplier.

The suicide of George Tsalikidis, a senior Vodafone executive, the day before company officials briefed the government on the surveillance operation, triggered speculation that the company was aware of the wire-tapping operation. However, a judicial investigation failed to reveal any link.