In recent news, the European Commission has taken a significant step by launching a formal investigation into Corning, a major player in the tech industry. The focus of this inquiry is on Corning’s Gorilla Glass product and whether the company has violated any antitrust regulations.
Here are some key points to consider about the investigation:
- Corning’s Alkali-aluminosilicate glass is widely used in the top phones and tablets, with tech giants like Samsung and Apple incorporating it into their devices.
- The European Union is worried that Corning may have used exclusive contracts to shut out other glass manufacturers from the market, which could harm competition and limit consumer choices.
- Margrethe Vestager, the outgoing EU competition chief, emphasizes the importance of vigorous competition in the production of cover glass to ensure affordable prices and high-quality products for consumers.
The investigation focuses on several aspects of Corning’s business practices:
- Exclusive sourcing obligations with mobile device makers and raw glass producers.
- Rebates tied to exclusivity agreements.
- Requirements for device makers to disclose competitive offers and accept them only if Corning fails to match the prices.
If Corning is found guilty of breaching EU competition rules, it may face fines. However, the company has the opportunity to address the Commission’s concerns by making commitments that could resolve the investigation.
Corning’s Gorilla Glass has been instrumental in providing added protection to phone and tablet displays against various forms of damage. While this technology was once a standout feature in Apple’s iPhones, it has now become a standard feature in modern smartphones.
It is essential to ensure fair competition in the tech industry to promote innovation and protect consumer interests. The outcome of the investigation into Corning’s practices will undoubtedly have a significant impact on the future landscape of the market. It is crucial for companies to abide by antitrust regulations to foster a competitive and consumer-friendly environment.
