Brussels (Brussels Morning Newspaper) – EU Commission unlocks antitrust investigation into possible anticompetitive practices by US-based company Corning over cover glass for electronic devices.
The European Commission has unlocked a formal investigation to evaluate whether Corning may have manipulated its dominant position on the worldwide market for a special type of glass that is mainly utilised to protect the screens of handheld electronic devices, such as mobile phones.
Corning Incorporated is an American multinational technology firm that specializes in speciality glass, ceramics, and connected materials and technologies including advanced optics, especially for industrial and scientific applications.
What antitrust concerns does the EU have with corning?
According to the EU Commission, it has concerns that Corning may have misinterpreted competition by concluding anti-competitive exclusive supply contracts with mobile phone manufacturers (Original Equipment Manufacturers or ‘OEMs’) and with firms that process raw glass (‘finishers’).
The EU Commission is concerned that the arrangements that Corning put in place with OEMs and finishers may have excluded opponent glass producers from large parts of the market, thereby decreasing customer choice, raising prices, and stifling innovation to the disadvantage of consumers worldwide.
As reported by the Commission, it will undertake its in-depth examination as a matter of priority. In parallel to the opening of proceedings, the Commission has assumed a Preliminary Assessment summarising the main points of the case and identifying its competition concerns. To answer the Commission’s worries, Corning may now submit pledges.
How could corning’s actions affect consumer pricing?
In her remarks, Executive Vice-President Margrethe Vestager, in charge of competition policy, stated: “It is a very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in the production of the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass. 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.”
