Over allegations that the giant electronic gadgets manufacturer has violated the competition rules in the Cathode-Ray (CTR) industry, Philips Electronics has been slapped with a "statement of objection" by the European Commission, Europe's anti-trust regulator. Although the company has not specified the exact objection raised by the agency, it did issue a statement saying that Philips would "study the statement of objections in detail and respond accordingly".

An unannounced inspection of CRT manufacturers was started by EC around two years ago on suspicions that manufacturers are fixing prices through cartels.

CRTs, which are the backbone of traditional television, are in the process of rapidly getting phased out with the growing popularity of flat-panel TVs and displays. In 2001, Philips completely opted out of the CRT marker.

"Philips takes the investigations into possible violations of these laws very seriously", the firm said in a statement. "The company intends to continue assisting the regulatory authorities in these investigations".

The EC's probe into CRT price-fixing is a part of a worldwide drive to investigate into the industry and its workings. While a class action is pending in the US, an investigation is waiting to happen in South Korea.