TL;DR
- The European Union launched an antitrust investigation into Corning, alleging anti-competitive practices in the smartphone cover glass market.
- Corning responded with a series of commitments aimed at addressing the EU’s concerns and ensuring fair competition.
- Key measures include scrapping exclusive agreements, capping supply demands, and revising patent enforcement practices to promote market fairness.
The European Union is turning up the heat on Corning, the American glass giant known for its industry-standard Gorilla Glass. Earlier this month, the EU launched an antitrust investigation into Corning’s market practices. Now, Corning has come forward with a detailed set of commitments aimed at addressing regulators’ concerns over its market dominance and alleged anti-competitive behavior.
Alkali-AS Glass — marketed under Corning’s iconic Gorilla Glass brand — has become a cornerstone of modern devices due to its durability and resistance to cracks. While Corning’s dominance in this field has driven technological advances, the EU suspects that the company’s grip on the market might have crossed competitive boundaries.
The EU investigation, launched on November 6, focuses on whether Corning’s agreements with device manufacturers (OEMs) and glass processing companies (known as finishers) have unfairly blocked rivals from gaining a foothold. Regulators believe these practices might have driven up prices, reduced consumer choice, and slowed down innovation.
Facing potential consequences under EU competition laws, Corning has laid out a series of steps to address the allegations:
- Corning will waive all exclusivity clauses in existing contracts and refrain from using them in future agreements with OEMs and finishers worldwide.
- Glass finishers will no longer face pressure to source more than half of their combined demand for specific glass products from Corning. Additionally, Corning will not use pricing or contract terms to enforce these thresholds indirectly.
- For devices sold in the European Economic Area (EEA), OEMs will be free to source their AAS glass from any supplier without facing penalties or losing price advantages from Corning.
- Corning will not use its patents on break-resistant glass to unfairly pressure companies into exclusive agreements. Any claims will be based solely on patent infringement, not breach of contract.
- Corning intends to directly inform its key partners — OEMs and finishers — about these changes through communications in both English and Mandarin, ensuring its commitments are clearly understood.
These commitments, applicable globally, would remain in effect for nine years, with a monitoring trustee overseeing their implementation and reporting to the Commission.
The European Commission is now inviting feedback from stakeholders, who have six weeks to weigh in on Corning’s proposed commitments. Their input will shape whether these measures are accepted or require further revisions. If approved, Corning’s commitments could set a precedent for how dominant players navigate antitrust concerns in the future.
