EU Launches Antitrust Investigation into Glass/Screen Manufacturer Corning, Potentially Facing Hefty Fines
Brook.X
This week, the European Commission announced an investigation into Corning, a renowned glass/screen manufacturer, accusing the company of abusing its market dominance and engaging in anti-competitive practices.
Founded in Massachusetts in 1851, Corning specializes in unique glass and ceramic materials. While Corning might not be a household name, it's likely that the tempered glass on your smartphone was manufactured by them.
Corning holds a dominant position in the smartphone screen market, with major phone makers including Apple using Corning's tempered products, such as the Corning Gorilla Glass, in their mid to high-end devices.
The European Commission expressed concern in an official press release that Corning might be abusing its dominant position in the global supply of protective glass screens for handheld electronic devices, potentially leading to distorted competition.
The investigation into Corning was sparked by the Commission's observations that Corning had signed anti-competitive exclusive supply agreements with phone manufacturers and companies processing raw glass (OEMs and processors), stipulating a primary reliance on Corning's products over those of its competitors.
Such agreements between Corning, OEMs, and processors might exclude competitive glass manufacturers from a significant portion of the market, thereby reducing customer choice, increasing prices, and stifolding innovation, to the detriment of global consumers.
At this stage, the EU is merely conducting a thorough investigation without having confirmed any anti-competitive behavior by Corning. The initial probe may take several months, and if Corning is found to have violated regulations, it could face fines up to 10% of its global annual revenue for the previous year, as per EU competition laws.
With Corning's global sales in 2023 reported at 12.6 billion, the EU could potentially issue a fine of up 1.3 billion, in addition to demanding the termination of various illegal agreements.
