The European Commission has launched an investigation into a possible cartel involving suppliers of smart card chips, in breach of EU anti-trust rules.

In the Netherlands, Philips has confirmed receiving a letter from the commission. The electronics giant says it will cooperate fully, the Financieele Dagblad reported. Philips divested its chip activities in 2006 under the name NXP.

Last year the company was fined more than €500m for its role in a cathode ray tube cartel.

The commission said in a statement it had originally begun talks on reaching a settlement with the companies involved but has now discontinued the talks due to ‘lack of progress’.