European Union (EU) antitrust authorities are looking into speciality glass maker Corning’s seeming exclusive deals for its Gorilla Glass product that is used in the manufacture of smartphone casings.
This week, the European Commission (EC), which regulates EU antitrust procedures, launched a formal investigation into whether Corning has abused its position as a leading producer of the type of reinforced glass used in the manufacture of smartphones, tablets and other portable devices.
The EC says it is concerned about “anti-competitive exclusive supply agreements” that require device makers to source all or most of their glass from Corning, citing the company’s policy of offering rebates to manufacturers as an inducement to purchase Corning glass in situations where rival companies might be offering lower prices.
Strong competition “is crucial to ensure low prices and high-quality glass,” Margrethe Vestager, the EC’s executive vice-president in charge of competition policy, declared. Acknowledging how “frustrating and costly” breaking a mobile phone screen can be, sought to ascertain whether Corning “may have tried to exclude rival glass producers, thereby depriving consumers from cheaper and more break-resistant glass.”
Corning issued a statement of its own stressing its commitment “to compliance with all applicable rules and regulations where it does business”, and pointing out that it works “with local regulatory authorities to ensure open discussion and cooperation.”
While it has no set deadline, the EC case could lead to formal charges, including a fine of as much as 10% of Corning’s annual global revenue.
