EU probes Corning for antitrust violations in smartphone glass market
US-based company Corning, the maker of Gorilla Glass, a highly durable glass used on most popular smartphones, now finds itself alongside tech giants like Apple, Google, Meta, Microsoft, and Amazon, facing scrutiny in the EU.
Corning is now under an EU antitrust investigation for allegedly using exclusive supply agreements with mobile manufacturers and raw glass processors, which may be blocking rival glass producers from significant portions of the market.
Per the European Commission press release, Corning requires mobile phone makers to source nearly all, if not all, of their alkali-AS glass from them, offering rebates as an incentive. These manufacturers must also inform Corning if they receive competitive offers from other glass makers and cannot accept those offers unless Corning is unable to match or beat the price.
Corning also has contracts with raw glass processors, requiring them to procure most or all of their alkali-AS glass exclusively from Corning and preventing them from challenging Corning's patents.
I think these charges really underscore how aggressive Corning is in protecting its dominant position in the smartphone glass market. Devices like the latest Apple and Android models, including the Google Pixel 9, rely on Gorilla Glass for its scratch resistance and durability. While it's not completely indestructible, it does a great job of preventing cracks and breaks. Still, Corning's market control, combined with its questionable practices, has clearly caught the EU's attention.
The Commission has announced that it will conduct a thorough investigation as a priority. There's no set timeline for how long the probe will take, so it remains to be seen whether the EU will confirm any violations.
If Corning is found guilty of violating EU competition rules, it could face a fine of up to 10% of its global revenue. However, the company will also have the chance to address the Commission's concerns by offering commitments that could put an end to the antitrust investigation.
Corning is now under an EU antitrust investigation for allegedly using exclusive supply agreements with mobile manufacturers and raw glass processors, which may be blocking rival glass producers from significant portions of the market.
Corning also has contracts with raw glass processors, requiring them to procure most or all of their alkali-AS glass exclusively from Corning and preventing them from challenging Corning's patents.
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.
– Margrethe Vestager, Executive Vice-President in charge of competition policy, November 2024
If Corning is found guilty of violating EU competition rules, it could face a fine of up to 10% of its global revenue. However, the company will also have the chance to address the Commission's concerns by offering commitments that could put an end to the antitrust investigation.
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