Corning, the maker of Gorilla Glass, is under EU investigation. The European Commission has alleged that Corning is misusing its dominant position to keep competing players out of the market.
EU opens investigation into Gorilla Glass maker’s business practices
The European Commission has opened a formal investigation into Corning’s business practices. The EU has opinioned that Corning has broken antitrust rules.
Regarding the just-opened investigation, EU competition chief Margrethe Vestager said, “We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, thereby depriving consumers of cheaper and more break-resistant glass.”
The EU has essentially alleged that Corning has used its dominant position in the market to ensure device manufacturers do not go to its competitors. In other words, Corning allegedly entered into “exclusive sourcing obligations” with device makers. These contractors essentially obligated manufacturers to source “all of nearly all” of their glass from Corning.
Corning may not have forced companies to source protective glass from the company. However, the company allegedly offered rebates for exclusivity deals. The EU has also reportedly alleged that the Gorilla Glass maker, “forced device makers to report on competitive offers and only accept them if Corning failed to price match.”
Will Corning face a hefty fine from the EU?
The European Commission has been increasingly going after tech giants. Be it Apple, Meta, or Google, the EU has opened multiple antitrust and anti-competition investigations. The aforementioned tech companies are facing hefty fines under multiple laws.
There’s little doubt about Gorilla Glass being the de facto and most popular choice for device makers. Developed over several years of research, Gorilla Glass offers additional protection against scratches, bumps, and drops.
There are a few other companies that offer protective glass for devices. However, big companies usually opt for the latest iteration of Gorilla Glass as it also helps in marketing. The EU reportedly suspects Corning may have signed contracts that indirectly force device makers to stay with the company. If the EU finds Corning guilty, it will slap a substantial fine on the company. The Gorilla Glass maker would have the opportunity to appeal the decision and contest the fine.