Key Points
- Corning avoids EU antitrust fine by ending exclusive deals
- Commitments remain in force for nine years
BRUSSELS, Belgium: The European Union said on Friday that it had accepted commitments from US glass producer Corning — the maker of a break-resistant glass used in tablets and smartphones — to avoid a possible antitrust fine.
Brussels opened a probe last year over concerns that the firm had abused its dominant position and distorted competition by concluding exclusive supply agreements with mobile phone manufacturers and firms processing raw glass.
“Corning has committed to cease conduct that could potentially prevent rivals from competing effectively on the market for cover glass used in smartphones and other handheld devices,” said Teresa Ribera, the European Union’s competition chief.
“This opens up that market and serves to ensure that consumers benefit from low prices and high-quality cover glass.”
The commitments, which are now legally binding, include a pledge to waive all exclusive clauses with device manufacturers and raw glass processing businesses.
Corning will not require phone-makers to purchase any specific quantity of its glass, which is mainly sold under the “Gorilla Glass” brand, from it and will “not condition any price advantages on such sourcing requirements” in the 30-country European Economic Area.
The commission — the EU’s antitrust regulator — said that the commitments, which will remain in force for nine years, “address its competition concerns”.
Were Corning not to honour them, it would risk a fine of up to 10 percent of its total annual turnover.
