Corning faces EU antitrust probe over exclusive supply deals with phone makers
9:32 am Wednesday, November 06th, 2024
By Foo Yun Chee
BRUSSELS (Reuters) -Corning faces an EU antitrust investigation over exclusive supply deals with mobile phone makers and raw glass processing companies that may exclude rival glass producers from large segments of the market, regulators said on Wednesday.
The U.S. company, which sells a break resistant glass used as a cover for mobile phones, tablets and smart watches under the Gorilla Glass brand, said it was committed to complying with all applicable rules and regulations where it does business.
“As part of that commitment, we work with local regulatory authorities to ensure open discussion and cooperation,” the company said in an email.
The European Commission said in a statement that it would assess whether Corning abused its dominant position in the global market for glass used mainly in mobile phones.
“We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, thereby depriving consumers from cheaper and more break-resistant glass,” EU antitrust chief Margrethe Vestager said.
The EU’s investigation will focus on exclusive sourcing obligations, exclusivity rebates and clauses requiring phone makers to inform Corning about competitive offers and accepting these offers only if Corning fails to match the price.
It will also look into Corning’s deals with companies that process raw glass that include exclusive purchase obligations and no challenge clauses.
The EU watchdog said Corning may now offer concessions to address its concerns, a move which could help Corning stave off a possible hefty fine without any finding of wrongdoing.
Companies risk fines as much as 10% of their global turnover if found to be in breach of EU antitrust rules.
(Reporting by Foo Yun Chee; Editing by Alexander Smith)
