For a few years, Corning’s Gorilla Glass has been almost synonymous with smartphones, as main cellular producers have broadly adopted the corporate’s expertise throughout their gadgets. This stranglehold within the trade has now come beneath scrutiny by the European Union, which is investigating doable anticompetitive practices by the corporate.
On Wednesday, the European Fee introduced a proper investigation into Corning to evaluate whether or not the US-based firm abused its dominant place, doubtlessly proscribing different glass producers from coming into the market.
Corning’s alleged restrictions on OEMs choosing different glass suppliers
The investigation facilities on Corning’s “anti-competitive unique provide agreements” with producers like Apple and Samsung. These agreements reportedly require producers to supply all alkali-aluminosilicate glass supplies solely from Corning.
” It is vitally irritating and expensive expertise to interrupt a cell phone display. Due to this fact, sturdy competitors within the manufacturing of the quilt glass used to guard such gadgets is essential to make sure low costs and high-quality glass. We’re investigating if Corning, a serious producer of this particular glass, might have tried to exclude rival glass producers, thereby depriving customers from cheaper and extra break-resistant glass,” mentioned Margrethe Vestager, Government Vice-President accountable for competitors coverage.
Below the phrases of those agreements, producers not solely obtain rebates for signing however should additionally “report back to Corning on aggressive affords” from different glass suppliers. Moreover, the agreements forestall producers from accepting different affords until Corning fails to match the proposed worth.
The investigation will study whether or not these practices have inflated materials prices, restricted buyer choices, and slowed the event of latest protecting glass applied sciences.
If the investigation concludes that Corning has violated EU competitors guidelines, the corporate might face a high quality of as much as 10% of its annual world income. Corning has been given time to answer the investigation.
Aside from a doable high quality, the area may additionally power Corning to tweak its unique provide settlement and that can profit OEMs and customers by means of decrease costs of those specialised glass supplies. Furthermore, we would additionally see it share its expertise with different firms by means of licensing.
Corning’s response
Corning has launched an announcement addressing the EU’s investigation, stating, “Corning is dedicated to compliance with all relevant guidelines and laws the place it does enterprise,” and expressing its willingness to cooperate with regulatory authorities for “open dialogue and cooperation.”
Corning’s shut partnerships with main manufacturers additional spotlight its affect within the trade. Apple lately launched a customized Ceramic Defend glass for the iPhone 16 (evaluation) and iPhone 16 Professional (evaluation), whereas Samsung has employed Corning’s newest Gorilla Glass Victus on its Galaxy smartphones and tablets for a number of years now. Samsung even co-developed a brand new Corning Gorilla Armor for the Galaxy S24 Extremely (evaluation), designed to scale back glare and reflection whereas sustaining the identical diploma of sturdiness.
What are your ideas on the European Fee’s transfer to look into Corning’s place? Do you suppose prospects have fewer choices in the case of a alternative for a protecting glass on their smartphones?