LONDON, U.K.: The European Union’s antitrust watchdog has launched a formal investigation into Corning Inc., suspecting the specialty glass manufacturer may have used exclusive agreements to stifle competition in the Gorilla Glass market.
The EU Commission, the bloc’s top regulatory body, is examining whether Corning’s deals with mobile device makers-requiring them to source nearly all their glass from Corning in exchange for rebates-have restricted rivals from competing fairly.
The EU Commission voiced concerns that Corning’s global dominance in durable glass, widely used in smartphones, tablets, and other portable devices, might have prevented alternative suppliers from providing cheaper or potentially higher-quality options to manufacturers. “Strong competition is vital to ensure affordable and high-quality glass for consumers,” said Margrethe Vestager, the EU’s executive vice-president in charge of competition. “We are investigating if Corning’s supply agreements may have kept rival glass producers out of the market.”
Under Corning’s arrangements, device makers reportedly receive discounted rates for exclusive purchases but are only permitted to explore competitors’ offers if Corning can’t match the pricing. The Commission fears this setup could limit access to cost-effective and resilient glass alternatives for manufacturers and consumers alike.
Corning responded in a statement, saying it remains “committed to compliance with all applicable rules and regulations” and collaborates with regulatory bodies worldwide to ensure transparency and cooperation.
The Commission has not set a deadline to complete the investigation. However, if Corning is found in violation of EU competition law, it could face fines of up to 10 percent of its annual global revenue.
