The European Commission has launched an antitrust investigation into the American company Gorilla Glass, which is widely used in smartphones, wearable devices, and automobile glasses. The Commission suspects that Corning, the company behind Gorilla Glass, may have engaged in anti-competitive practices to exclude competitors from the market.
According to the Commission, Corning allegedly included contractual obligations in agreements with mobile device manufacturers that required them to purchase all or most of their glass from Corning. In exchange, Corning provided discounts and demanded to be informed of any competitive offers, giving them the opportunity to match or beat the prices.
In contracts with glass processors, Corning reportedly imposed exclusive purchasing conditions, forcing them to buy the entire volume or a significant portion of glass exclusively from Corning. Additionally, contracts included clauses that prohibited challenging the company’s patents.
The European Commission is concerned that these agreements could harm competition in the market, limit consumer choice, drive up prices, and stifle innovation. If Corning is found to have violated Article 102 of the EU functioning agreement on the abuse of a dominant position, the company could face fines of up to 10% of its annual turnover.
While the Commission plans to conduct a thorough investigation as a priority, the initiation of the case does not prejudge the outcome. Representatives from Corning have stated that the company always complies with legal norms and is willing to cooperate with the European Commission to address any concerns raised by the investigation.
Gorilla Glass, a patented Corning product based on an alkaline aluminosilicate composition, is known for its high damage resistance. This has made it a popular choice for manufacturers of smartphones, tablets, and electronic devices, with brands like Google, Samsung, Sony, and Apple incorporating Gorilla Glass into their products.