(Cover image source : Corning)
Corning, the maker of Gorilla Glass used in many of today’s smartphones and gadgets, has managed to dodge a major penalty from the European Union by agreeing to drop its exclusive supply agreements with top device manufacturers.
According to Reuters, EU regulators accepted a proposal from Corning that effectively ends an eight-month antitrust investigation into the company’s business practices. The investigation, which started back in November 2024, accused Corning of anti-competitive behavior by locking in major electronics brands into exclusive deals.
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What Did Corning Do?
The EU flagged several of Corning’s business terms as problematic — especially the exclusivity clauses that required certain brands to source as much as 50% of their glass needs solely from Corning. These deals, in the eyes of regulators, made it difficult for rival glass manufacturers to compete fairly in the market.
To settle the issue, Corning agreed not only to end those exclusive contracts but also to formally inform all its partners of the changes. These concessions were key in helping the company avoid a hefty fine.
Key Concessions from Corning
Corning’s customer list reads like a who’s who of global tech brands. The company has supplied glass to major players like Samsung, Apple, Xiaomi, Sony, Google, Dell, HP, Lenovo, OPPO, ASUS, and Huawei, among others. Many of these companies rely on Gorilla Glass for use in smartphones, tablets, and laptops.
A Close Call for Corning
Had Corning not complied, the EU could have imposed a fine of up to 10% of its global annual revenue, a penalty that might’ve cost the company as much as US$1.26 billion, based on its 2023 turnover.
What this Means for the Industry
While Corning remains a dominant force in the glass manufacturing industry, this development could open up opportunities for alternative suppliers. It also serves as a warning to other large component makers about maintaining fair competition practices within the EU’s strict regulatory environment.
For now, Corning can breathe a sigh of relief — but its grip on the industry may loosen as device makers gain more freedom to source glass elsewhere.
Source: HardwareZone.com