Corning makes a variety of toughened glasses, the most famous of which is Gorilla Glass – and it’s this product that has landed the company in the sights of the European Commission.
The Commission is concerned that Corning is abusing its dominant position as a glass supplier for smartphones, tablets and smartwatches to reduce competition in this sector.
In particular, the Commission is concerned about three things. The first requirement is that smartphone makers buy all or nearly all of their glass from Corning. If they do, Corning will offer them a discount. And finally, manufacturers are required to let Corning know if a competitor makes a better offer and give Corning the opportunity to match it.
Additionally, the Commission suggests that Corning also has anti-competitive deals with “finishers” – these are companies that process raw glass and turn it into sheets used to protect mobile displays. Are.
The commission’s announcement stated:
“The Commission is concerned that the agreements Corning has entered into with OEMs and finishers have driven rival glass producers out of large areas of the market, leading to reduced customer choice, higher prices and a risk to consumers around the world. Innovation will suffer.”
The Commission will now launch an in-depth investigation to find out whether Corning has breached EU competition rules. It writes that “the initiation of a formal investigation does not predict its outcome”, meaning it does not guarantee that Corning is actually at fault.
Margrethe Vestager, Executive Vice-President in charge of competition policy, commented:
“Breaking a mobile phone screen is a very frustrating and expensive experience. Therefore, strong competition in the production of cover glass used to protect such equipment is important to ensure low prices and high quality glass. We are investigating whether Corning, the major producer of this particular glass, may have tried to drive out rival glass producers, thereby depriving consumers of cheaper and more break-resistant glass.
