Corning, which makes the Gorilla Glass that most premium smartphones use, wants to adjust anticompetitive behavior under pressure from the European Union.
Corning is proposing concessions to the European Commission in hopes of avoiding a potentially costly antitrust fine. The Commission is investigating the maker of Gorilla Glass on suspicion of anti-competitive practices. Corning now wants to promise to take steps to prevent them.
Corning Gorilla Glass is the standard for strong and hard-to-break glass, especially on smartphones. It says Corning owes that position not only to the quality of the Alkali-AS glass it markets. The way Corning markets its product would not be competitive. For example, Corning demands exclusivity clauses and minimum purchase quantities from its customers.
Proposed measures
To meet the concerns of the European Commission, Corning is now promising to stop those practices:
- All exclusivity clauses disappear;
- Manufacturers should no longer purchase certain quantities;
- There will no longer be price advantages for those who meet certain quotas;
- Product finishers no longer have to buy at least half of their glass from Corning;
- Claims related to patents will no longer be based on contractual mechanisms, but only on the patents themselves.
If Europe agrees to Corning’s plans, and the company abides by them, any problems are off the table. If Corning fails to reassure the Commission and continues to violate antitrust rules, it could be fined up to 10 percent of global sales.