"The new licensing conditions offered by Philips are likely to bring about lower prices and more transparency for millions of consumers of recordable CDs," the Commission said in a statement.
A small group of companies including Philips holds patents for the CD and DVD standards, and others who make discs must pay them. In a number of cases, licencees have complained they are treated unfairly.
A coalition, the Federation of Interested Parties in fair Competition in the Optical Media sector, had complained about the terms from Philips for CD-Rs.
Philips has key patents on the technology for making the discs along with several other firms but in 2005 stopped offering a joint portfolio license, the Commission said.
Under the agreement with the Commission, Philips will publish a list from independent experts identifying essential patents.
It will also clarify that discs which do not use a proprietary Philips technology but alternative approaches still qualify as CD-Rs.