Earlier this year, the European Union launched an antitrust investigation into Corning over concerns that the company was using exclusivity contracts to push competitors out of the smartphone glass market. Now the manufacturer, best known for the Gorilla Glass brand, has proposed a number of measures to resolve the situation.
Image Source: Corning
Impact-resistant alkali-aluminum glass (Alkali-AS) from an American company, sold under the Gorilla Glass brand, is used to protect the displays of devices from most leading brands, including Samsung, Oppo, Honor, as well as Apple iPhone smartphones.
According to a press release from the European Commission, Corning’s proposed measures include eliminating all exclusivity clauses in its current contracts with mobile phone OEMs and raw glass processing companies, promising not to use these practices in the future or to force its customers to purchase certain products from them. volumes of reserves. In addition, Corning will not offer OEMs any cost benefits resulting from such requirements. Corning also agreed to enforce its patents related to impact-resistant safety glass only on the grounds of patent infringement, not breach of contract.
The European Commission is currently seeking industry feedback on Corning’s proposals. Comments on these proposals can be submitted within six weeks. If the EU accepts Corning’s proposals, the package of obligations will become legally binding for the company. It will also apply worldwide and will remain in force for nine years, and its implementation will be monitored by a trustee who will report to the European Commission. Any breach of obligations may result in heavy fines from the EU.
As part of the proposed package, Corning will also notify device manufacturers and green glass processors of the contract changes.