Corning’s Proposed Changes to Settle EU Antitrust Investigation Over Gorilla Glass

Corning's Antitrust Investigation and Proposed Commitments

Gorilla Glass manufacturer, Corning Inc., is currently under scrutiny from the European Union (EU) due to antitrust concerns. Launched on November 6th, the investigation aims to discern whether Corning utilized exclusivity contracts to eliminate competition among glass manufacturers in the smartphone sector. This behavior has allegedly enabled Corning to monopolize the global market for its Alkali-AS Glass products, which are known for their break-resistant properties.

Background of the Investigation

The EU has raised alarms over Corning’s contractual practices, which may have hampered rival companies’ abilities to enter or operate within the market. The implications of these exclusivity arrangements could potentially stifle innovation and fair competition in the industry.

Proposed Remedies by Corning

To address the EU's concerns, Corning has submitted a series of commitments aimed at rectifying the situation:

• Waiving Exclusivity Clauses: Corning has proposed to waive all exclusivity clauses in existing contracts with phone manufacturers and glass finishers.
• Commitment Against Future Clauses: The company promises not to implement similar exclusivity agreements in future contracts.
• Quantity Purchases Relaxation: Corning will not impose minimum purchase requirements on its customers.
• Enforcement of Patents: Corning committed to enforce its patents related to Alkali-AS Glass only in cases of patent infringement, not breach of contract.

Implications of the Commitments

If accepted, these changes would not only apply to the European market but on a global scale, remaining in effect for at least nine years. During this period, Corning will be subject to monitoring by EU authorities to ensure compliance with the new commitments.

Potential Challenges and Consequences

Stakeholders and concerned parties have a six-week window to challenge these commitments before they are officially accepted by the EU. Failure to adhere to the proposed commitments could have severe financial implications for Corning, with potential fines reaching up to 10 percent of its global revenues—approximately $1.25 billion based on their 2023 financial performance.

Comparative Perspective: Apple’s Prior Settlement

This situation mirrors a similar settlement reached by Apple with the EU in July, which involved an investigation into third-party contactless payment systems. These cases highlight the growing scrutiny by EU regulators on major corporations operating within its jurisdiction.

Conclusion

Corning’s proactive approach to addressing the EU’s concerns signifies its attempt to remain a responsible player in the technology sector. The ongoing investigation and its outcome could serve as a crucial precedent for how exclusivity practices are managed across the industry.