The European Commission has opened a formal investigation against the American glass manufacturer Corning, accused of alleged anti-competitive practices regarding its famous Gorilla Glass product.
It is a movement important in the mobile device sector, given Corning’s dominance of the screen protector glass market.
The importance of Gorilla Glass in the mobile industry
This is a material resistant to scratches, collisions and shocks, which is part of the standard equipment of the most important smartphones and tablets on the market, including iPhones and Android devices.
How the company stayed on top
According to the European Commission, it imposed a series of exclusivity contracts with manufacturers of mobile devices and companies that process raw glass.
Among the practices are the requirement to purchase all or most of the Alkali-AS glass from Corning and the granting of discounts for exclusivity.
In addition, these manufacturers should notify Corning if they receive offers from other glass suppliers, with the option to accept those offers only if the manufacturer cannot match or exceed that price.
Other non-competitive practices
Corning also has similar agreements with companies that process raw glass, requiring them to use almost exclusively glass from them and prohibiting them from challenging the company’s patents.
Thus, competitors are prevented from entering the smartphone screen protector market.
Implications of the investigation
If a violation of EU competition rules is found, the manufacturer risks a fine of up to 10% of the global turnover. The company has the opportunity to cooperate with the European Commission and propose corrective measures, which could end the investigation.
Company representatives said they comply with all applicable regulations and are open to collaboration to resolve the situation.
Margrethe Vestager, the former Commissioner for Competition of the European Union, emphasized the importance of real competition in this market, to give consumers access to higher quality products and lower prices.
Main concerns
The commission fears that Corning’s actions have reduced consumer choice and raised costs for protective glass, while also restricting the development of alternative, perhaps even more sustainable, solutions.
Source: www.go4it.ro
