The European Commission is launching a formal investigation into Corning. The glass producer is allegedly putting rival brands out of business with its dominant Gorilla Glass product.
The European Commission has launched a formal investigation into Corning, a producer of Gorilla Glass. This is because the EU fears that Corning is using exclusivity contracts to exclude competing glass manufacturers. Gorilla Glass, or Alkali aluminosilicate glass, is a widely used protective glass eagerly used by Apple and Samsung, among others. Corning now risks a fine, but may still comply with the regulations.
Gorilla Glass
Corning is a global glass manufacturer that produces Alkali aluminosilicate glass (Alkali-AS Glass). Corning markets this type of glass under the brand “Gorilla Glass,” which will sound familiar to many. Chances are your iPhone or Samsung device is clad in this protective glass.
“It is a very frustrating and costly experience to break the screen of a cell phone. 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,” said Margrethe Vestager, European Commissioner for Competition.
Exclusivity contracts
The Commission has a suspicion that Corning entered into exclusive supply agreements with cell phone manufacturers and raw glass processing companies. This allegedly prevented Corning from giving rival glass producers a chance in large parts of the market.
“We are investigating whether Corning, a major producer of this specialty glass, may have tried to exclude competing glass producers, denying consumers cheaper and more shatter-resistant glass,” Vestager said.
If Corning is found to be in violation of EU competition rules, the company can expect a fine. The glass manufacturer still has a chance to avoid it, however, by making a series of commitments that could halt the antitrust investigation.
“Corning has and will continue to be committed to compliance with all applicable rules and regulations where it does business,” said Corning spokesperson Meredith Hoing in a statement to The Verge.