Corning Ends Exclusive Phone Deals to Evade EU Antitrust Fine

Corning, the renowned US-based glass manufacturer famous for its innovative Gorilla Glass, has made a significant commitment to halt its exclusive agreements and practices that were flagged as anti-competitive by the European Commission. This decision comes in light of an investigation announced last year, which accused Corning of undermining competition through its exclusive supply contracts. These agreements were believed to inflate prices and hinder innovation in the market. The European Commission has accepted Corning’s commitments, making them legally binding in accordance with EU regulations.

During the investigation, the European Commission revealed that Corning had mandated mobile phone manufacturers to procure all or nearly all of their Alkali-AS glass requirements, branded as Gorilla Glass, from Corning, even offering rebates as incentives. As part of the settlement with the European Commission, Corning is now obligated to “waive all exclusive dealing clauses in all its current agreements” with mobile phone manufacturers and companies engaged in raw glass processing. Furthermore, Corning is prohibited from entering into any new exclusive agreements in the future.

Moreover, Corning is restricted from compelling manufacturers or their suppliers to purchase any specific quantity of Alkali-AS Glass within the European Economic Area. On a global scale, Corning cannot mandate that manufacturers and their suppliers acquire more than 50 percent of their glass requirements from the company. This commitment will be enforced for a duration of nine years, with a designated trustee appointed to oversee Corning’s compliance with these regulations.

As highlighted by Reuters, the EU fines could potentially amount to 10 percent of a company’s revenue; however, Corning has successfully avoided any financial penalties. The European Commission’s investigation concluded without imposing a fine, finding no wrongdoing on Corning’s part, thus having no significant impact on the Gorilla Glass business or the company itself. Corning communicated this outcome to Bloomberg, emphasizing that the resolution has not materially affected its operations.