The European Union (EU) on Monday gave the green light to the proposed acquisition of Symbol Technologies Inc. by Motorola Inc, saying the merger of the two United States companies would not hurt effective competition in the EU.

The European Commission said Monday "the horizontal overlaps between the activities of Motorola and Symbol are limited" and that "for all product categories concerned, the combined firm would continue to face several strong, effective competitors."

The EU's executive body concluded that the transaction "would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it."

Motorola is the second biggest mobile phone maker in the world and is also active in wireless network infrastructures, laptop computers, communication and network systems and broadband products.

Symbol manufactures "ruggedized" mobile computers, designed for use in harsh, dirty or extreme environments. It also produces data capture and scanning devices, wireless local area network infrastructure and radio frequency identification technology.

By the acquisition, Motorola would gain control over Symbol's "ruggedized" mobile technology solutions and "ruggedized" handheld mobile computers in particular.

The commission said alternative and competing sources of supply for competing manufacturers of "ruggedized" mobile computers would continue to exist and that there would be no particular risks of these markets being closed off.

Motorola announced in September last year that it would pay 3.9billion U.S. dollars for Symbol, a leader in portable bar code scanners and customized handheld computers. Analysts said the deal could complement Motorola technology used in retail, transport and health-care markets.