The European Union launched an investigation into Corning Inc., the American company behind the popular Gorilla Glass, for possible violations of competition laws. Corning, a major supplier of specialized toughened glass used in smartphones and electronic devices, is accused of limiting market competition by establishing exclusive supply agreements with electronic vendors and glass processors.
The European Commission expressed concern that Corning’s exclusive contracts with original equipment manufacturers (OEMs) and glass finishing companies may hinder other glass suppliers’ access to the market, potentially increasing prices and limiting choices for consumers. According to the Commission’s statement, these agreements could be preventing competitors from gaining a foothold, consequently affecting innovation in the sector.
Among the findings, the Commission identified clauses in Corning’s contracts that allegedly require smartphone manufacturers and finishers to:
- source “all or nearly all” of their protective glass from Corning,
- accept rebates as long as they comply with exclusivity agreements,
- notify Corning of any competing offers from other suppliers and only accept those if Corning cannot match the price.
This requirement, the EU suggests, could have further discouraged competitors from entering the market.
This investigation is part of the EU’s ongoing efforts to address anti-competitive practices in the tech supply chain, which it believes could harm consumers globally. While the probe has no set timeline, it may result in penalties if Corning is found to have breached EU competition rules. Such penalties could amount to up to 10% of Corning’s global revenue, which could significantly impact the company’s operations.
In a response, Corning’s spokesperson, Michael West, stated that the company remains committed to regulatory compliance across its global operations. “Corning has and will continue to be committed to compliance with all applicable rules and regulations where it does business. We work with local regulatory authorities to ensure open discussion and cooperation,” West said.
The investigation allows Corning the opportunity to submit formal responses and defend its business practices. Meanwhile, the EU will conduct its review as a priority, potentially imposing penalties or restrictions if it finds that Corning’s agreements distort competition in the protective glass industry.
Featured image was created with the assistance of Ideogram
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