Corning makes various types of hard glass, of which Gorilla Glass is the best known – and it is precisely this product that may have brought the company to the attention of the European Commission.
The Commission is concerned that Corning is abusing its dominant position as a glass supplier for smartphones, tablets and smartwatches to reduce competition in this area.
In concrete terms, the Commission is concerned about three things. The first requires smartphone manufacturers to buy all or almost all of their glass from Corning. If they do, Corning will offer them discounts. And finally, makers are expected to tell Corning if a competitor makes a better offer and give Corning a chance to match it.
In addition, the Commission suggests that Corning has also entered into anti-competitive agreements with “finishers” – these are the companies that process the raw glass and turn it into sheets used to protect mobile displays.
The Commission’s announcement states:
“The Commission is concerned that Corning’s agreements with OEMs and finishing companies have excluded rival glass manufacturers from large segments of the market, reducing customer choice, increasing prices and stifling innovation to the detriment of consumers worldwide. ”
Now the Commission will open an in-depth investigation to discover whether Corning broke EU competition rules. It writes that “the opening of a formal investigation does not prejudge its outcome,” meaning it is not guaranteed that Corning is indeed wrong.
Margrethe Vestager, Executive Vice-President in charge of Competition Policy, commented:
“Breaking a cell phone screen is a very frustrating and costly experience. 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 whether Corning, a major manufacturer of this specialty glass, may have attempted to exclude competing glass manufacturers, depriving consumers of cheaper and more shatter-resistant glass.”