The European Commission has wrapped up an antitrust inquiry into Corning’s glass supply contracts, concentrating on the company’s actions regarding its Gorilla Glass, which is extensively utilized in smartphones, tablets, and wearables. The inquiry prompted worries about Corning potentially misusing its dominant market status by binding original equipment manufacturers (OEMs) and glass processing firms into exclusive supply contracts, consequently restricting competition from other glass producers.
Although Corning supplies specialty cover glass to Apple, the Commission found that these particular products did not fall under the inquiry’s purview, as they are specifically designed for Apple’s purposes. As a result, the investigation mainly focused on Corning’s interactions with other OEMs and finishers in the marketplace.
In response to the Commission’s concerns, Corning proposed a set of commitments designed to ensure equitable competition. These commitments encompassed:
1. Broadening the commitments to include both Alkali-AS Glass and Clear Glass Ceramics, which are expected to see increased usage in the future.
2. Releasing all exclusive dealing provisions in existing contracts with OEMs and pledging not to incorporate similar provisions in upcoming contracts.
3. Not mandating OEMs in the European Economic Area (EEA) to procure specific volumes of glass from Corning, nor conditioning price benefits on such purchases.
4. Enforcing a limitation that prevents Corning from requiring OEMs to obtain more than 50% of their glass needs from them on a global scale.
5. Guaranteeing that finishers are not compelled to buy more than 50% of their total worldwide demand for glass from Corning.
6. Restricting patent enforcement related to break-resistant cover glass to claims based solely on patent infringement, steering clear of breach of contract allegations.
7. Incorporating a standard anti-circumvention provision in contracts.
8. Informing key stakeholders of the commitments in both English and Mandarin.
These commitments will last for nine years, during which a trustee will oversee compliance. Corning’s agreement with Apple, however, will remain as is. This arrangement allows Corning to bypass further regulatory measures while fostering a more competitive landscape in the glass supply sector.
