The European Commission (EC) has opened an antitrust investigation into US-based glass-maker Corning, claiming that its Gorilla Glass has dominated the mobile phone screen market due to restrictive deals and licensing.
Corning’s shatter-resistant alkali-aluminosilicate glass keeps its place atop the market, according to the EC’s announcement, because it both demands, and rewards with rebates, device makers that agree to “source all or nearly all of their (Gorilla Glass) demand from Corning.” Corning also allegedly required device makers to report competitive offers to the glass maker. The company is accused of exerting a similar pressure on “finishers,” or those firms that turn raw glass into finished phone screen protectors, as well as demanding finishers not pursue patent challenges against Corning.
“[T]he agreements that Corning put in place with OEMs and finishers may have excluded rival glass producers from large segments of the market, thereby reducing customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide,” the Commission wrote.