Corning is now below an EU antitrust investigation for allegedly utilizing unique provide agreements with cell producers and uncooked glass processors, which can be blocking rival glass producers from vital parts of the market.
Per the European Fee press launch, Corning requires cell phone makers to supply almost all, if not all, of their alkali-AS glass from them, providing rebates as an incentive. These producers should additionally inform Corning in the event that they obtain aggressive gives from different glass makers and can’t settle for these gives except Corning is unable to match or beat the worth.
Corning additionally has contracts with uncooked glass processors, requiring them to acquire most or all of their alkali-AS glass solely from Corning and stopping them from difficult Corning’s patents.
It is vitally irritating and dear expertise to interrupt a cell phone display screen. Subsequently, robust competitors within the manufacturing of the quilt glass used to guard such units is essential to make sure low costs and high-quality glass. We’re investigating if Corning, a significant producer of this particular glass, could have tried to exclude rival glass producers, thereby depriving shoppers from cheaper and extra break-resistant glass.
– Margrethe Vestager, Government Vice-President in command of competitors coverage, November 2024
I feel these prices actually underscore how aggressive Corning is in defending its dominant place within the smartphone glass market. Units like the most recent Apple and Android fashions, together with the Google Pixel 9, depend on Gorilla Glass for its scratch resistance and sturdiness. Whereas it is not fully indestructible, it does an excellent job of stopping cracks and breaks. Nonetheless, Corning’s market management, mixed with its questionable practices, has clearly caught the EU’s consideration.The Fee has introduced that it’s going to conduct a radical investigation as a precedence. There is not any set timeline for the way lengthy the probe will take, so it stays to be seen whether or not the EU will verify any violations.
If Corning is discovered responsible of violating EU competitors guidelines, it may face a high-quality of as much as 10% of its world income. Nevertheless, the corporate will even have the possibility to deal with the Fee’s considerations by providing commitments that would put an finish to the antitrust investigation.
