Corning Seeks to Resolve EU Antitrust Probe with Major Contract Reforms
Following the European Union’s antitrust investigation into its business practices earlier this month, Corning has submitted a comprehensive package of commitments aimed at settling the case. The U.S.-based manufacturer, known for producing Gorilla Glass used in Apple iPhones and other devices, could face penalties up to 10% of its global revenue if found in violation of EU competition rules.
The Settlement Proposal: Key Components
The European Commission is currently seeking industry feedback on Corning’s proposed changes during a six-week consultation period. If accepted, these commitments would become legally binding worldwide for nine years, with compliance monitored by an independent trustee.
Major proposed changes include:
- Elimination of exclusivity clauses: Corning will remove all exclusivity requirements from current contracts with device manufacturers (OEMs) and glass finishers
- Purchase quota limitations: For EEA-bound devices, OEMs won’t be required to source any minimum quantity from Corning
- Global purchase caps: Outside the EEA, OEMs won’t be compelled to source more than 50% of their demand for specific glass types from Corning
- Pricing reforms: The company will not offer conditional price advantages tied to purchase requirements
Impact on Glass Finishers and Patent Enforcement
Corning’s proposal also addresses concerns about third-party processors:
- Finishers won’t be required to source more than 50% of their combined demand for certain glass types from Corning
- The company will not enforce contractual penalties related to patent claims, focusing solely on actual patent infringement
“Finishers maintain flexibility in determining how to distribute their purchases among different glass types while complying with the overall cap,” the European Commission noted in its official statement.
Next Steps in the Process
Corning has committed to clearly communicating these changes to all partners in multiple languages, including English and Mandarin Chinese. The EU’s decision will set an important precedent for competition in the specialty glass market, particularly for mobile device components.
This case highlights the increasing scrutiny of global supply chain practices in the tech industry, where dominant suppliers face growing regulatory pressure to maintain fair competition.
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