The European Commission has made the headlines in recent years for tightening its grip on Big Tech over monopolistic policies and abusing competition. This time, the agency has strengthened glass producer Corning on its radar over alleged anti-competitive practices. Corning Alkali-aluminosilicate (AS) break-resistant glass is currently used by some of the biggest brands in the industry, including Apple, Samsung, Google, etc.
As the EU Commission noted, Corning might have used its dominance in the market to secure "anti-competitive exclusive supply agreements" with smartphone manufacturers and other companies processing raw glass, aka finishers.
The antitrust probe aims to investigate Corning"s alleged exclusive sourcing obligations, which mandated OEMs to source all or nearly all of their Alkali-AS Glass demand from the company. The move could lead OEMS to benefit from exclusive rebates. Additionally, Corning apparently requested OEMs to report on competitive offers and accept the offer only if the company fails to match the price.
"The Commission is concerned that the agreements that Corning put in place with OEMs and finishers may have excluded rival glass producers from large segments of the market, thereby reducing customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide."
The Commission has requested Corning to submit its commitments to address concerns. If found guilty, the US-based firm could face a hefty fine. The time frame for assessing Corning"s commitments is yet to be determined, but the consequences for Corning could be significant.
In a statement to The Verge, Corning spokesperson Meredith Hoing said, "Corning has and will continue to be committed to compliance with all applicable rules and regulations where it does business. As part of that commitment, we work with local regulatory authorities to ensure open discussion and cooperation."
The majority of the smartphones in the market are currently using Corning break-resistant glass. The company"s most advanced glass, Gorilla Glass Victus 2, is found on some of the best-selling flagship Android phones like Samsung Galaxy S24 Ultra and Google Pixel 9.
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