The European Commission has launched an antitrust investigation into Corning, the US-based manufacturer of specialized glass used in smartphones, including Apple's iPhone. The probe focuses on potential anticompetitive practices related to Corning's dominant position in the smartphone cover glass market, particularly its Gorilla Glass technology.
The investigation stems from concerns that Corning may have abused its market position by implementing exclusivity contracts that prevent rival glass makers from competing for business with mobile device manufacturers. The European Commission is particularly interested in arrangements that allegedly required manufacturers to source "all or nearly all" of their specialized alkali-aluminosilicate glass from Corning.
EU competition chief Margrethe Vestager emphasized the importance of strong competition in the production of cover glass for mobile devices, stating that it is "crucial to ensure low prices and high-quality glass" for consumers.
Corning's relationship with Apple has been notably strong, with Apple investing $495 million in the company between 2017 and 2021 through its Advanced Manufacturing Fund. This collaboration led to the development of Ceramic Shield, an exclusive glass technology used in iPhone models since 2020. Apple claims this technology is twice as tough as competitive smartphone glass.
The Commission aims to determine whether Corning's practices have resulted in higher prices and reduced innovation in the market. If found to have violated EU competition rules, Corning could face penalties of up to 10% of its global revenue.
In response to the investigation, a Corning spokesperson stated that the company is committed to compliance with all applicable rules and regulations and will work with local regulatory authorities to ensure open discussion and cooperation.
The probe highlights the increasing scrutiny of tech industry practices by regulatory bodies and underscores the importance of fair competition in the smartphone components market. As the investigation unfolds, it may have implications for the broader smartphone industry and potentially impact future collaborations between component suppliers and device manufacturers.