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EU doing the funky gibbon over Gorilla Glass

by on07 November 2024


Anti-trust

The European Commission has launched a formal antitrust investigation into Corning, focusing on the company’s popular Gorilla Glass product. Gorilla Glass dominates the mobile phone and tablet cover glass market.

Corning’s alkali-aluminosilicate glass is widely used by leading manufacturers, including Samsung and Apple, to protect their devices. The investigation seeks to determine whether Corning has used its dominant position to stifle competition through a series of exclusivity agreements that may have unfairly restricted rival glass makers from entering the market.

The EU's outgoing competition chief, Margrethe Vestager, said market competition was vital. The cost and frustration of broken mobile screens underscore the need for affordable, high-quality cover glass options.

"Strong competition in producing the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass. We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, depriving consumers of cheaper and more break-resistant glass.”

The Commission’s inquiry centres on whether Corning has imposed restrictive sourcing obligations on device manufacturers, requiring them to source “all or nearly all” of their glass from Corning.

Allegedly, Corning has also incentivised exclusivity deals through rebates and required that device makers inform Corning of competitive offers, with a mandate to reject those offers if Corning matched the price.

The company could face substantial fines if the investigation finds Corning violating EU antitrust laws. However, Corning can propose commitments to address the EU’s concerns, potentially halting the investigation.

A Corning spokesperson, Meredith Hoing, responded to the probe by emphasising the company’s commitment to regulatory compliance: “Corning has and will continue to be committed to compliance with all applicable rules and regulations where it does business. As part of that commitment, we work with local regulatory authorities to ensure open discussion and cooperation.”

Last modified on 07 November 2024
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