EU Antitrust Investigation into Corning

By Foo Yun Chee

BRUSSELS (Reuters) – EU antitrust regulators opened an investigation into U.S. glass maker Corning (NYSE:GLW) on concerns about its exclusive supply deals with mobile phone manufacturers and raw glass processing companies. The regulators fear these agreements may exclude rival glass producers from significant market segments.

The European Commission will assess whether Corning has abused its dominant position in the global market for glass primarily used in mobile phones.

EU antitrust chief Margrethe Vestager stated, "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 investigation will examine exclusive sourcing obligations, exclusivity rebates, and clauses that require phone manufacturers to inform Corning about competitive offers, accepting these offers only if Corning fails to match the price. Additionally, the probe will review Corning's contracts with raw glass processing companies, which include exclusive purchase obligations and no-challenge clauses.

Corning is known for its break-resistant glass sold under the Gorilla Glass brand, used in mobile phones, tablets, and smartwatches. The EU competition watchdog noted that Corning may offer concessions to resolve these concerns. Companies found in violation of EU antitrust rules may face fines of up to 10% of their global turnover.