Fast Facts
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Commitment to Change: Corning, manufacturer of Gorilla Glass, has pledged to end all exclusive agreements and anti-competitive practices following an investigation by the European Commission.
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Legally Binding Agreement: The European Commission accepted Corning’s commitments, making them enforceable under EU rules for nine years, preventing exclusive supply contracts in the future.
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Limitations on Supply: Corning will not require mobile manufacturers to source exclusively from them, ensuring that no more than 50% of their glass needs can come from Corning worldwide.
- No Financial Penalty: Despite the investigation, Corning avoided fines and maintained that the resolution had no negative impact on their business or Gorilla Glass operations.
Corning, the U.S.-based manufacturer behind Gorilla Glass, has taken significant steps to avoid a hefty antitrust fine from the European Commission. Recently, the Commission launched an investigation into Corning’s exclusive supply agreements with phone manufacturers. It accused Corning of suppressing competition, which led to higher prices and stifled innovation.
To resolve this issue, Corning has agreed to terminate its exclusive deals. The Commission has accepted these commitments, and they are now legally binding. Consequently, Corning must eliminate all exclusive dealing clauses in its existing agreements with mobile phone manufacturers and glass processors.
Furthermore, this agreement prohibits Corning from entering into exclusive contracts in the future. The company can no longer require manufacturers to source all their Alkali-AS glass exclusively from them, particularly within the European Economic Area. Globally, manufacturers cannot be compelled to source more than 50 percent of their glass needs from Corning.
These commitments will remain in effect for nine years, and a trustee will monitor Corning’s compliance. Significantly, this resolution means Corning avoids potential fines that could have reached 10 percent of its revenue.
This decision not only benefits Corning by averting fines but also supports healthier competition in the smartphone market. As smart cities and urban innovation develop, access to cutting-edge materials like Gorilla Glass can accelerate advancements in technology and design. By fostering competition, Corning helps ensure a diverse market filled with innovative products that enhance urban living.
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