Corning makes various kinds of tough glass, the most famous of which is Gorilla Glass – and it’s just this product that may have gotten the company into the sights of the European Commission.
The Commission is concerned that Corning is abusing its dominant position as a glass supplier for smartphones, tablets and smartwatches to diminish the competition in this field.
Specifically, the Commission is concerned about three things. The first is requiring that smartphone makers buy all or nearly all of their glass from Corning. If they do, Corning will offer them rebates. And finally, makers are expected to tell Corning if a competitor makes a better offer and give Corning the opportunity to match it.
Additionally, the Commission suggests that Corning has anti-competitive deals with “finishers” too – these are the companies that process the raw glass and turn it into the sheets used to protect mobile displays.
The Commission’s announcement states:
“The Commission is concerned that the agreements that Corning put in place with OEMs and finishers may have excluded rival glass producers from large segments of the market, thereby reducing customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide.”
Now the Commission will open an in-depth investigation to discover whether Corning did breach the EU’s competition rules. It writes that “the opening of a formal investigation does not prejudge its outcome”, i.e. it’s not guaranteed that Corning is indeed in the wrong.
Margrethe Vestager, Executive Vice-President in charge of competition policy, commented:
“It is very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in the production of 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, thereby depriving consumers from cheaper and more break-resistant glass.”
