European Commission Probes Corning's Gorilla Glass Practices for Antitrust Violations

Corning Faces Antitrust Investigation by the European Commission over Gorilla Glass

Corning Inc., the maker of the pervasive Gorilla Glass product, is under scrutiny by the European Commission (EC). The European Union's primary competition authority has launched a formal inquiry into the company's business practices, specifically examining claims suggesting its use of exclusivity contracts to stifle market competition.

The Impact of Gorilla Glass on the Mobile Device Market

Gorilla Glass, an Alkali-aluminosilicate covering, is a ubiquitous feature of the modern mobile phone and tablet landscape. It is the primary protective layer for many leading brands, including Samsung and Apple, highlighting its substantial market influence. However, the EC is investigating whether Corning's widespread reach may have resulted in unfair market practices. The focus lies on alleged exclusivity contracts that potentially bar other glass manufacturers and therefore, limit market competition.

Margrethe Vestager, outgoing EU competition chief, elaborated on this issue’s significance. “Given how devastating and costly a phone screen shatter can be for users, competitive production of protective glass is vital. It ensures cost-effectiveness and high quality,” Vestager said. “We’re investigating if Corning has acted to exclude rival glass manufacturers, potentially depriving consumers of access to more affordable and higher durability glass.”

Specific Concerns and Potential Consequences of the Investigation

The main focus of the Commission's concerns lies in Corning’s dealings with mobile device manufacturers and raw glass suppliers. The EC is dissecting Corning's exclusive sourcing obligations, rebates linked to exclusive deals, and conditions requiring device manufacturers to disclose competitive offers, further impeding their capacity to switch suppliers unless Corning neglects to match competing prices.

In the event Corning is found in breach of the EU's competition rules, a significant fine may ensue. However, the investigation is not one sided. Corning will be presented with an opportunity to address the Commission's concerns and potentially halt the investigation through a series of commitments.

Corning's Position and Commitment

Corning has pledged its commitment to adhere to all regulations in the regions where it conducts business, promising ongoing cooperation with local regulatory bodies. "We remain dedicated to compliance with all rules and regulations in the places we do business," said Meredith Hoing, Corning spokesperson. "As part of this commitment, we actively engage in dialogue and collaboration with regulatory authorities."

The Importance of Gorilla Glass in Device Protection

Gorilla Glass holds significant importance in the realm of device protection offering additional damage resistance against scratches, impacts and accidental drops. Apple’s iPhone devices initially propelled it to popularity before the Alkali-aluminosilicate glass took the helm as a critical element in modern smartphones.