For a few years, Corning’s Gorilla Glass has been practically synonymous with smartphones, as main cell producers have extensively adopted the corporate’s expertise throughout their units. This stranglehold within the business has now come below scrutiny by the European Union, which is investigating potential anticompetitive practices by the corporate.
On Wednesday, the European Fee introduced a proper investigation into Corning to evaluate whether or not the US-based firm abused its dominant place, probably proscribing different glass producers from coming into the market.
Corning’s alleged restrictions on OEMs deciding on different glass suppliers
The investigation facilities on Corning’s “anti-competitive unique provide agreements” with producers like Apple and Samsung. These agreements reportedly require producers to supply all alkali-aluminosilicate glass supplies solely from Corning.
” It is vitally irritating and dear expertise to interrupt a cell phone display screen. Subsequently, robust competitors within the manufacturing of the quilt glass used to guard such units is essential to make sure low costs and high-quality glass. We’re investigating if Corning, a serious producer of this particular glass, might have tried to exclude rival glass producers, thereby depriving customers from cheaper and extra break-resistant glass,” stated Margrethe Vestager, Govt Vice-President in control of competitors coverage.
Underneath the phrases of those agreements, producers not solely obtain rebates for signing however should additionally “report back to Corning on aggressive provides” from different glass suppliers. Moreover, the agreements forestall producers from accepting different provides except Corning fails to match the proposed value.
The investigation will study whether or not these practices have inflated materials prices, restricted buyer choices, and slowed the event of recent protecting glass applied sciences.
If the investigation concludes that Corning has violated EU competitors guidelines, the corporate may face a high-quality of as much as 10% of its annual world income. Corning has been given time to answer the investigation.
Aside from a potential high-quality, the area might also drive Corning to tweak its unique provide settlement and that may profit OEMs and customers by way of decrease costs of those specialised glass supplies. Furthermore, we’d additionally see it share its expertise with different firms by way of licensing.
Corning’s response
Corning has launched a press release addressing the EU’s investigation, stating, “Corning is dedicated to compliance with all relevant guidelines and rules the place it does enterprise,” and expressing its willingness to cooperate with regulatory authorities for “open dialogue and cooperation.”
Corning’s shut partnerships with main manufacturers additional spotlight its affect within the business. Apple lately launched a customized Ceramic Protect glass for the iPhone 16 (evaluation) and iPhone 16 Professional (evaluation), whereas Samsung has employed Corning’s newest Gorilla Glass Victus on its Galaxy smartphones and tablets for a number of years now. Samsung even co-developed a brand new Corning Gorilla Armor for the Galaxy S24 Extremely (evaluation), designed to scale back glare and reflection whereas sustaining the identical diploma of sturdiness.
What are your ideas on the European Fee’s transfer to look into Corning’s place? Do you suppose prospects have fewer choices in the case of a selection for a protecting glass on their smartphones?
