The world’s largest maker of scratch and break-resistant glass for phones now faces heat in the EU for agreements that supposedly bind phone companies from shopping elsewhere.
Corning, the biggest manufacturer of protective glass for smartphones, is facing an antitrust probe in the EU. The US-based company famed for its ubiquitous Gorilla Glass tech may be charged for its supremacy in the market.
The European Commission has launched an investigation into Corning’s supposed monopoly in the space for break-resistant screens for phones and other portable devices with displays. It believes the company may have attempted to use its dominance to push competitors out of the market.
The Commission is concerned that Corning may have entered into exclusive deals with smartphone makers and suppliers, which may have “distorted competition” in the segment.
According to the Commission, these exclusive agreements bind other participants into sourcing break-resistant alkali-aluminosilicate glass, or “Alkali-AS Glass” or their subtypes solely from Corning. In exchange, Corning supposedly offers exclusive rebates to these companies for not engaging with competitors like Japan’s Asahi Glass Company.
Additionally, it is alleged that Corning obligates manufacturers into reporting offers from its competitors, allowing them to accept those offers only if Corning fails to match the price. It also forbids suppliers from competing and has specific clauses that prevent them from challenging its patents.
Citing the importance of stronger and more cost-effective resistant glass options across different price segments of smartphones, the EU’s head of anti-competition policy, Margrethe Vestager, said the Commission is investigating if Corning may have attempted to push out competitors and deprive customers of cheaper and more effective options.
The bloc will now open an investigation against Corning, under rules that “prohibit the abuse of dominant position.” It has also invited Corning to submit defenses and counterclaims. If found guilty of the charges, Corning may face penalties up to 10% of its yearly global revenue.
The EU’s concerns about Corning’s dominance aren’t baseless. The company’s Gorilla Glass range is colloquially used as the standard protection for phone displays. It is widely used by almost all major smartphone brands, including Apple, which exclusively calls it Ceramic Shield for the iPhone.