Corning , the maker of the popular Gorilla Glass , has pledged to make some significant changes in an effort to settle an investigation launched against it by European antitrust authorities.
The European Union launched an investigation on November 6 over concerns that Corning is using exclusivity agreements to keep rival glass makers out of the phone industry. As a result, it dominates the global market for durable Alkali-AS Glass.
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Gorilla Glass is used to protect most of today's top phones and tablets. Both Samsung and Apple use it on many of their models.
The European Commission had said the investigation would focus on deals Corning has made with mobile device and companies that produce raw glass. The EU wants to examine whether device makers have agreed to source “all or almost all” of their material from Corning, whether discounts have been given for exclusivity agreements, and whether manufacturers have been forced to submit competing offers and only accept them if Corning does not offer anything better.
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According to the European Commission's press release, the corrective measures proposed by Corning include:
- waiving all exclusivity clauses in its current agreements with phone companies and glass providers
- the promise not to use such clauses again in the future
- the promise not to obligate its customers to purchase specific quantities of inventory from Corning.
If these measures are accepted, the EU says Corning's changes will apply worldwide and remain in place for at least nine years. Authorities will monitor Corning to make sure it actually implements the changes.
If Corning fails to meet its commitments, it could face fines of up to 10% of its global turnover or approximately $1.25 billion based on its 2023 financial results.
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The investigation against Corning highlights the wider importance of maintaining competitive markets within the EU. By scrutinising companies that potentially abuse their market power, the European Commission ensures that consumers benefit from different choices and fair prices.
These investigations are crucial to preventing anti-competitive behavior that can stifle innovation and create barriers for smaller businesses trying to enter the market. In addition, the investigation serves as a deterrent for other companies that might consider engaging in similar practices.
Source: www.theverge.com
