TL;DR
- Gorilla Glass maker Corning is facing an EU antitrust probe over alleged abuse of its dominant position in the smartphone cover glass market.
- The investigation focuses on exclusive supply agreements that Corning may have signed with smartphone makers and raw glass processors.
A vast majority of smartphones these days feature some form of protective glass over the display and, in some cases, on the back panel. Although a few glass manufacturers offer such protective glass to smartphone makers, Gorilla Glass and Ceramic Shield from US-based Corning are undoubtedly the most commonly used cover glass products.
Corning’s dominant position in the smartphone cover glass market has brought the company under the scanner, with the EU launching an investigation into possible anticompetitive practices. The European Commission’s antitrust probe aims to identify whether Corning exploited its market position to sign exclusive supply agreements with smartphone makers and companies that process raw glass to the detriment of competitors.
According to the European Commission’s press release (via MacRumors), the agreements may have forced smartphone makers to source “all or nearly all” of their protective glass from Corning, offering rebates for compliance and requiring manufacturers to report competitive offers. Corning’s agreements with raw glass processors allegedly included similar exclusivity obligations and no-challenge clauses that prevented them from challenging Corning’s patents.
The Commission notes that such contracts could have helped the company exclude “rival glass producers from large segments of the market, thereby reducing customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide.” If the investigation finds Corning in violation of the EU competition rules, the company may face penalties. Currently, the Commission has not set a legal deadline for the antitrust investigation.
