European Commission investigates Gorilla Glass maker Corning for anti-trust practices in EU

The European Commission opens an informal investigation to asses whether Corning may have abused its worldwide market dominance in speciality glass.

Corning is under fire for abuse of its dominant market position

Has Corning abused its market dominance?

US-based Corning is a global glass producer for many industrial and consumer applications. It produces Alkali-aluminosilicate glass. It is a break-resistant glass mainly used for display portable electronic devices such as mobile phones, tablets, or smartwatches.

The Commission is concerned that Corning may have distorted competition by concluding anti-competitive exclusive supply agreements with smartphone manufacturers and companies producing raw glass.

A recent press release by the Commission claims that Corning allegedly requires that smartphone makers buy all or nearly all their glass. If they do so, Corning will offer them rebates. And lastly, makers are expected to tell Corning if a competitor makes a better offer and allow Corning to match the said offer.

It is very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in the production of the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass. We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, thereby depriving consumers from cheaper and more break-resistant glass. - Margarethe Vestager, Executive Vice-President in Charge of Competition Policy

Now, the Commission is opening an in-depth investigation to discover whether or not Corning breached the EU's competition rules. The opening of this investigation does not prejudge its outcome.

What do you guys think?

Source: European Commission, Via: GSMArena