Brussels, 22/05/2006 (Agence Europe) - The European Commission has approved, if certain conditions are met, the planned acquisition by the Dutch company Axalto of Gemplus, established in Luxemburg. Both companies produce and sell smart cards used for mobile phones, payments and identification, and related products and services. The parties have provided commitments to license the combined entity's patent portfolio for ten years and provide third parties with interoperability information necessary to ensure the compatibility of their mobile phone SIM cards with the combined entity's technology. SIM card administration is carried out through Over-The-Air (“OTA”) platforms, which enable mobile phone operators to control a SIM card without a physical connection. The Commission concluded that, despite the strong positions of the two companies, the transaction would not directly lead to price increases or to a decrease in the pace of innovation.