Corning cracks under EU pressure for anti-competitive behaviour, opts to settle
Among other concessions, the tempered glass maker for phones will waive all exclusivity clauses with customers to avoid an antitrust penalty. #corning #temperedglass #
Corning Gorilla Glass Victus 2, the latest tempered glass offering to smartphone makers. Image: Corning.
Corning, the famous smartphone tempered glass provider, has committed to a series of settlements after the European Commission declared it anti-competitive.
In a statement to the press, the European Commission is “inviting comments” from Corning’s competition to get feedback on whether Corning’s concessions are sufficient for its supposed tempered glass monopoly.
Earlier this month, the European Commission found that Corning “may have distorted competition in the market” for tempered glass on smartphones (Alkali-AS Glass).
It found that Corning issued exclusivity agreements (phone makers cannot use other tempered glass brands), and dictated that these customers' suppliers must stock up on Corning's tempered glass types. The findings concluded that Corning’s anti-competitive behaviour had “excluded rival glass producers from large market segments.”
As a concession to avoid hefty penalties (since EU fines can be up to 10% of the company’s worldwide turnover, which works out to US$1.26 billion based on its 2023 financial report), Corning has offered the following commitments to be a fairer player of the temperature glass industry.
First, Corning said it would waive all exclusivity dealing clauses worldwide.
Second, Corning cannot force suppliers or phone brands to purchase any amount of its tempered glass, and also cannot offer price advantages that are conditional on these purchases.
Third, these supply chains cannot be forced to carry Corning’s tempered glass in their inventory (at least, not more than 50%).
Fourth, the same applies to Corning’s other glass types, like NAS Glass, LAS Glass, and Clear Glass Ceramics. Corning also cannot require manufacturers or finishers to concentrate 50% of their demand on Corning’s glass types.
Fifth, Corning can only contest claims on its break-resistant cover glass based on patent infringement. That means Corning cannot claim that unbreakable or break-resistant glass is its idea, and rivals can make their versions of break-resistant glass without threat of a Corning lawsuit, as long as they don’t infringe on Corning’s patents.
Sixth, to inform its stakeholders (customers, manufacturers, suppliers, finishers) about everything said above, specifically in English and Mandarin Chinese.
Naturally, the European Commission has thus invited all of Corning’s competitors and customers to comment on whether these concessions by Corning are sufficient to help the tempered glass industry become a little more vibrant and fair.
You can read all our coverage on Corning and the company's tempered glass here.
Source: The European Commission (1, 2)
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