The European Commission has opened the floor for public comment on a series of commitments proposed by Corning Incorporated (NYSE:GLW) to alleviate concerns regarding its competitive practices in the supply of Alkali-aluminosilicate glass, a durable material prominently used for electronic device screens. Corning, recognized for its 'Gorilla Glass' brand, is a leading global producer of this glass type, which includes lithium aluminosilicate (LAS Glass) and sodium aluminosilicate (NAS Glass) variations.
The Commission's probe, initiated on November 6, 2024, scrutinizes Corning's potential market dominance and the possibility that it engaged in anticompetitive exclusive supply contracts with mobile phone makers and glass finishing companies. Preliminary findings suggest Corning might have misused its market position, infringing on Article 102 of the Treaty on the Functioning of the European Union by limiting market access for competing Alkali-AS Glass producers, which could lead to higher prices, less choice for consumers, and hindered innovation.
In response, Corning has put forward commitments to discard exclusivity clauses in its contracts with original equipment manufacturers (OEMs) and finishers for Alkali-AS Glass supplies. Additionally, Corning pledges not to mandate OEMs in the European Economic Area to buy set quantities of its glass or offer price incentives tied to such conditions. For OEMs outside the EEA and for combined demands of LAS Glass and Clear Glass Ceramics, Corning will limit the requirement to a maximum of 50% of their demand and refrain from conditional price benefits.
Furthermore, Corning agrees not to compel finishers to source over half of their demand for NAS Glass, LAS Glass, and Clear Glass Ceramics from them and will not use contractual penalties to enforce this cap. Regarding patent enforcement, Corning commits to base legal actions solely on infringement rather than contract breaches and to avoid using contractual mechanisms to bolster patent claims.
These proposals, which apply globally, are intended to be in effect for nine years, with a monitoring trustee overseeing adherence and reporting to the Commission. Corning will also communicate these commitments to key stakeholders in English and Mandarin.
Interested parties are invited to submit their opinions within six weeks from the date the summary of the proposed commitments is published in the EU's Official Journal. The full commitment text and related notices will be accessible on the Commission's competition website.
The Commission's eventual decision, contingent on the outcome of the market test regarding the adequacy of Corning's commitments, could render these commitments legally binding without concluding that Corning violated EU antitrust laws. However, failure to comply could result in a fine of up to 10% of Corning's global turnover. Further details can be found on the Commission's competition website, under case number AT.40728.
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