The European Commission (EC) opened an investigation into Corning’s supply agreements with mobile phone manufacturers and companies which process raw glass, raising concerns competition rules may have been breached.   

In a statement, the regulator explained it is assessing whether the Gorilla Glass manufacturer had abused its dominant position in the global market for the specific type of glass used in mobile phone screens and other handheld electronics.

It cited specific concerns about exclusive obligations requiring device makers to source “nearly all” of their Alkali-aluminosilicate glass (Alkali-AS) glass from Corning; related rebates; and clauses obliging OEMs to tell the company about offers from rivals, then only allowing the manufacturers to accept offers “if Corning fails to match the price”.  

The EC is also assessing the company’s deals with processers of raw glass, known as finishers, noting there appeared to be exclusive purchase obligations and no challenge clauses in place.

The authority noted it is “concerned” Corning’s agreements may have “excluded rival glass producers from large segments of the market”, with the ultimate impact of cutting customer choice, increasing prices and hampering innovation.

EC EVP in charge of competition policy Margrethe Vestager said it is a “very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in the production of the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass”.

“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.”