Corning, Apple’s partner for its Ceramic Shield screen glass, is in turn under the spotlight of the European Commission. An investigation to determine whether it, like so many others, abused its dominant position to increase its profits.
Corning under European investigation
The European Commission is not only investigating Apple. We learn that it recently opened an investigation against the company Corning, an American company specializing in the manufacture of glass and ceramics. The company that protects the screen of many smartphones including the iPhone’s Ceramic Shield with its Gorilla Glass.
The objective of this investigation is clear, to determine whether Corning has abused its dominant position in the global market for glass used for smartphone screens. Being a leader in its field, it has numerous exclusive supply agreements with mobile phone manufacturers, led by Apple and Samsung.
Agreements that could have excluded competitors from the market, which has the negative effect of reducing consumer choice and increasing prices. The European Commission is examining whether these agreements violated EU antitrust rules which prohibit the abuse of a dominant position regardless of the sector of activity.
Cornering says it is ready to cooperate to show its credentials. It could also make concessions and respect a new series of commitments to avoid the final sanction of the fine. The final report is expected within a few months. The maximum penalty is up to 10% of the company’s global turnover.
Statement from Margrethe Vestager, European Commissioner for Competition since 2014:
We are investigating whether Corning, a leading producer of this special glass, may have tried to exclude competing glass producers, thereby depriving consumers of cheaper, more break-resistant glass.
It is a very frustrating and costly experience to break a cell phone screen. Therefore, strong competition in the production of the cover glass used to protect these devices is crucial to ensure low prices and high quality glass.
To be continued.
