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European Commission Launches Antitrust Investigation into Corning’s Gorilla Glass Practices

By  |  November 6, 2024

The European Commission has officially launched an antitrust investigation into U.S.-based technology giant Corning Inc., examining whether the company has leveraged its strong position in the specialty glass market to stifle competition. Corning’s Gorilla Glass, an alkali-aluminosilicate glass used widely in smartphones and tablets, is utilized by major device makers including Samsung and Apple. The Commission’s probe aims to determine if Corning has unfairly used exclusivity arrangements to limit market access for competing glass producers, potentially raising costs for consumers by restricting competitive alternatives.

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    The investigation, according to The Verge, is focused on Corning’s contracts with mobile manufacturers and raw glass suppliers. The Commission has raised concerns about the potential anti-competitive nature of these agreements, which may require manufacturers to source “all or nearly all” of their glass needs from Corning. Such arrangements could effectively lock out rivals, particularly those unable to match Corning’s scale or financial incentives. The inquiry will explore whether Corning’s practices, which allegedly include conditional rebates and competitive offer reporting requirements, constitute an abuse of market dominance in violation of EU antitrust laws.

    “It is a costly and frustrating experience to deal with a broken mobile screen,” commented Margrethe Vestager, the EU’s outgoing competition chief. According to The Verge, Vestager emphasized the importance of competitive pressure in the cover glass market, which she believes is crucial to ensuring consumers have access to affordable, high-quality glass. “We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, thereby depriving consumers of more affordable and durable options,” she added. Vestager has been a prominent voice in Europe’s recent efforts to enforce stricter competition rules in the technology sector.

    The European Commission will now analyze whether Corning’s agreements, which reportedly include exclusivity clauses and conditional rebates, have distorted competition by preventing manufacturers from seeking alternative suppliers. These practices may have limited the scope for rival glass producers to compete, potentially inflating prices and reducing innovation in the materials used for protective screens.

    If the investigation finds Corning in breach of EU competition laws, the company could face substantial fines. However, Corning may have the option to address the Commission’s concerns by offering legally binding commitments to amend its business practices. Such commitments could potentially bring the probe to a close without formal penalties, allowing Corning to maintain its foothold in the market under revised terms.

    Source: The Verge