Corning, the manufacturer famous for its Gorilla Glass line supplied to iPhones and many other smartphones, is being investigated by the European Union (EU).
The European Commission (EC) is currently investigating Corning on suspicion that the manufacturer has abused its dominant position in the glass industry for smartphones, tablets and smartwatches. They are concerned that Corning may be engaging in practices that reduce competition in this sector.
Corning now supplies tempered glass for the iPhone and many other devices.
Specifically, the EC is concerned with three main issues. First, Corning requires smartphone manufacturers to buy all or nearly all of their glass from it in exchange for discounts. Second, these manufacturers must also notify Corning if a competitor offers a better price, giving Corning the opportunity to respond. In addition, the EC also suspects that Corning has entered into anti-competitive agreements with companies that process raw glass, known as “finishers,” to exclude rival glass manufacturers from the market.
“We are concerned that the agreements entered into by Corning may have reduced customer choice, increased prices and stifled innovation, to the detriment of global consumers,” the EC said in a statement.
The EC is currently conducting an in-depth investigation to determine whether Corning has breached EU competition rules. They have stressed that the opening of the investigation does not mean that Corning has done anything wrong.
Corning tempered glass is widely used.
“Breaking a mobile phone screen is frustrating and costly, and strong competition in the production of protective glass is vital to ensure low prices and high quality,” said Margrethe Vestager, the EC’s executive vice-president for competition policy. “We are investigating whether Corning is trying to exclude rival glass manufacturers, depriving consumers of cheaper, more shatter-resistant glass.”
