EU confirms raids on smart-card chip makers

Smart Card ChipBrussels - The European Union has carried out raids on companies which make the microchips for "smart" cards such as mobile-phone SIM cards, suspecting that they are operating an illegal cartel, officials in Brussels confirmed Wednesday.

The European Commission, the EU's executive, launched the raids on "several smart-card chip producers in several member states" on October 21, a statement released in Brussels said.

Following standard commission practice, the statement did not identify the companies in question, stressing instead that the launch of raids did not constitute proof of illegal behaviour.

The commission is responsible for enforcing the EU's strict rules on competition. In recent years it has broken up price-fixing cartels in industries ranging from car glass to vitamins, and imposed fines totalling close on 9 billion euros (12.1 billion dollars). (dpa)

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