Glass maker Corning under EU investigation over possible antitrust violations

What conscionable happened? Corning Gorilla Glass is arsenic communal a show successful high-end smartphones arsenic Qualcomm's latest SoCs. The European Commission is alert of this, and has now opened an investigation into whether Corning collapsed antitrust laws by abusing its ascendant marketplace position.

Corning's alkali-aluminosilicate solid is utilized successful a immense scope of smartphones, tablets, notebooks, and wearables from nan apical tech firms.

EU antitrust regulators are concerned that Corning's exclusivity deals pinch mobile telephone makers and earthy solid processing companies whitethorn beryllium pushing rival solid makers retired of ample segments of nan market.

Outgoing EU antitrust main Margrethe Vestager said that breaking a telephone surface was a frustrating and costly experience. Therefore, beardown title successful nan accumulation of nan solid that covers mobile devices was important to guarantee debased prices and a high-quality product.

"We are investigating if Corning, a awesome shaper of this typical glass, whitethorn person tried to exclude rival solid producers, thereby depriving consumers from cheaper and much break-resistant glass," Vestager said.

The EU investigation will attraction connected exclusive sourcing obligations, which require instrumentality makers to root each aliases astir each of their solid from Corning.

The investigation will besides analyse nan rebates nan US institution offered for exclusivity deals and its clauses requiring telephone makers to pass Corning of immoderate competitory offers and only accepting them if nan patient fails to value match.

Also nether scrutiny are Corning's deals pinch companies that process earthy solid that see exclusive acquisition obligations and nary situation clauses, writes Bloomberg.

Corning tin now bring nan investigation to an extremity by offering concessions to reside nan EU title watchdog's concerns. If it is recovered blameworthy of breaching EU antitrust rules, it faces being fined arsenic overmuch arsenic 10% of its world turnover.

Corning reported an yearly gross of $12.59 cardinal for nan twelvemonth ending December 31, 2023. In nan 2nd 4th of 2024, Corning's gross was $3.25 billion, marking a 0.25% summation compared to nan aforesaid 4th successful nan erstwhile year.

Corning is conscionable nan latest US institution to beryllium investigated by nan EU complete imaginable anti-competitive practices. Meta's ad-free subscription model, Google's integer markets enactment compliance, and Apple's App Store practices are besides being probed.