EU Antitrust Probe Targets Corning’s Dominance in Mobile Phone Glass Market
EU Launches Investigation into Corning’s Gorilla Glass Monopoly
The European Commission (EC) has announced an antitrust investigation into US-based glass-maker Corning, citing concerns that its Gorilla Glass has dominated the mobile phone screen market through restrictive deals and licensing agreements.
Corning’s Alleged Anticompetitive Practices
According to the EC, Corning’s shatter-resistant alkali-aluminosilicate glass has maintained its market lead due to its aggressive business practices. The company allegedly requires device makers to source all or nearly all of their Gorilla Glass demand from Corning, and rewards them with rebates for compliance. Additionally, Corning is said to have demanded that device makers report competitive offers to the glass maker, and has exerted pressure on "finishers" – companies that turn raw glass into finished phone screen protectors – to refrain from pursuing patent challenges against Corning.
Exclusion of Rival Producers
The EC claims that these agreements may have excluded rival glass producers from large segments of the market, reducing customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide.
Gorilla Glass: A Widely Recognized Brand
Gorilla Glass has become synonymous with durability and protection, with new iterations boasting improved strength and resistance. Apple, in particular, has closely partnered with Corning, investing $45 million to expand its US manufacturing capabilities. The first iPhone was even modified at the last minute to use Gorilla Glass instead of a plastic screen, per Steve Jobs’ insistence.
Response from Corning
Ars has reached out to Corning for comment and will update this post with any response.
Conclusion
The EU’s investigation into Corning’s Gorilla Glass dominance highlights the importance of maintaining a competitive market to ensure innovation and consumer choice. As the glass industry continues to evolve, it is essential for companies like Corning to adapt and remain transparent in their business practices to avoid antitrust concerns.
FAQs
Q: What is the purpose of the EU’s investigation into Corning?
A: The investigation aims to determine whether Corning’s business practices have created a monopoly in the mobile phone glass market, reducing customer choice and stifling innovation.
Q: What are the alleged anticompetitive practices by Corning?
A: Corning is accused of requiring device makers to source all or nearly all of their Gorilla Glass demand from the company, rewarding them with rebates for compliance, and exerting pressure on "finishers" to refrain from pursuing patent challenges against Corning.
Q: How has Apple partnered with Corning?
A: Apple has invested $45 million in Corning to expand its US manufacturing capabilities and has used Gorilla Glass in its products, including the iPhone.
