The European Commission has opened an investigation into the largest manufacturer of protective glass for consumer electronics, Corning, on suspicion of violating antitrust rules. The company was supposed to use its dominant position on the market in order to limit the market share of competing manufacturers.
Gorilla Glass, a product of Corning, is one of the most popular cover glasses for smartphones and tablets. It is used by leading manufacturers such as Samsung and Apple. It is popular mainly because of its increased resistance to scratches, impacts and falls. However, the European Commission has begun to investigate whether Corning entered into exclusivity agreements with mobile device manufacturers and third-party suppliers. The alleged agreements were supposed to contain a condition that manufacturers would purchase protective glasses exclusively from Corning in exchange for discounts and other benefits.
According to the statements of the Commissioner for Economic Competition, Margrethe Vestager, sufficient competition in the cover glass market is essential to ensure low prices and high quality products. The Commission suspects that Corning may have effectively prevented competitors from entering the market, thereby depriving consumers of access to alternative, possibly cheaper, products of equal quality.
If the Commission concludes that Corning violated competition rules, it could cost the company tens of millions of euros. The fine can climb up to 10 percent of the company’s annual worldwide revenues. However, if Corning proposes a way to remedy the situation after the charges are filed, the Commission may reduce or eliminate the financial penalty without further legal action.
Source: vat.pravda.sk
