Corning Under EU Radar, Gorilla Glass Deals Investigation Starts
EU Investigates Corning for Potential Anti-Competitive Practices
The European Union has launched an investigation into Corning, the American manufacturer renowned for its Gorilla Glass, over possible anti-competitive practices. This investigation stems from suspicions that Corning may have leveraged its dominant market position to limit competition and disadvantage consumers.
Spotlight on Gorilla Glass
The European Commission has formally begun its probe into Corning, examining whether the company has used exclusive contracts with smartphone manufacturers and glass processors to push competitors out of the market, thereby violating EU antitrust laws. Gorilla Glass, known for its exceptional durability and scratch resistance, is used by almost all major smartphone brands, making Corning a market leader in protective glass technology. However, this dominance is now under scrutiny.
Concerns from EU Competition Authorities
According to Bloomberg, outgoing EU Competition Commissioner Margrethe Vestager expressed concerns about Corning’s practices in an official statement. “We are investigating whether Corning, as the primary producer of this specialized glass, has attempted to sideline competing glass manufacturers, potentially keeping consumers from affordable and shatter-resistant alternatives,” she stated.
The Commission’s investigation centers on specific concerns, including:
- Corning allegedly requiring smartphone manufacturers to source most or all of their glass from them.
- The use of discounts to secure exclusive contracts.
- Possible requirements for device manufacturers to report competitor offers and only consider them if Corning cannot match the price.
Potential Outcomes
If the investigation substantiates these allegations, Corning could face fines of up to ten percent of its global annual revenue. However, Corning may choose to address these concerns voluntarily, potentially ending the investigation through concessions.
Founded in 1851 as Corning Glass Works, the company has a long history of innovation in glass manufacturing. Gorilla Glass, created in partnership with Apple for the first iPhone in 2007, is now a ubiquitous technology used in billions of devices worldwide. Despite its dominance, Corning faces competition from alternatives such as Dragontrail by AGC Inc. and Xensation by Schott AG.
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