A French court has been told Eurotunnel is under siege from thousands of illegal immigrants desperate to reach Britain.
The company is demanding the closure of the Sangatte refugee camp near Calais - blaming the French authorities for effectively allowing it to run as the last staging post before the rush for the UK.
The camp, requisitioned from Eurotunnel by the French Government in 1999 to house families fleeing the Kosovo crisis, should now be given back, said Eurotunnel lawyer Jean-Pierre Boivin.
It has become a clearing house for asylum seekers and unscrupulous agents taking money to aid the illicit human traffic through the tunnel, he said.
The hearing came as Eurotunnel launched a bitter attack on the French authorities.
It said their "inaction" was encouraging the "illicit and criminal activity" in broad daylight of traffickers who now use the camp to negotiate cash deals to help asylum seekers evade tunnel security.
In court, magistrate Jean-Max Brunet, was shown film of the activities in the camp, with Iraqi traffickers openly discussing fees - 700 dollars (£480) - to help get individuals through the tunnel.
"The proximity of the camp to the tunnel is an open invitation to try to get across. That short distance is the last step in a long journey across Europe," said Mr Boivin.
"This centre was originally taken over by the French authorities to house families from Kosovo.
"There was no reason for Eurotunnel to be suspicious of this move. But Eurotunnel was fooled: this camp is no longer housing desperate families. It is a centre for the recycling and education of illegal immigrants."