The European Commission - the European Union's executive body - has approved the $24 billion proposed merger between computer companies Hewlett-Packard and Compaq Computer.

The approval does not require the companies to sell any assets. And, it spares them from a four-month investigation, which could have concluded with a rejection of the deal, as in the case of the $46 billion merger between General Electric and Honeywell last year.

The merger will be the largest-ever in the information technology sector, with the combined company controlling up to 60 percent of some European markets.

Still, competition authorities of the European Commission who examined the merger concluded the deal would not enable Hewlett-Packard to harm consumers by raising prices and discouraging innovation in the industry.

The European Commission may block or force changes to mergers between companies which have sales of about $250 million each, even if the companies are not based in the EU.

The merger could still be stopped by Hewlett-Packard's shareholders, because relatives of the Hewlett family - who hold an 18 percent stake in Hewlett-Packard - oppose the deal.

Some information for this report provided by AP and Bloomberg.

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