In its investigation into competition concerns against US manufacturer Corning, the European Commission is seeking comments on the company’s commitments. Corning, based in the city of the same name in the U.S. state of New York, is a world-leading manufacturer of alkali aluminosilicate glass (Alkaline AS Glass). It is a special type of glass that is primarily used as a cover for displays on portable electronic devices such as cell phones, tablets or smart watches. Corning markets cover glass primarily under the “Gorilla Glass” brand.
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On 6 November, the Commission launched a formal investigation into allegations “Corning may have distorted competition in the market for alkaline AS glass by entering into anti-competitive exclusive supply agreements with mobile phone manufacturers and raw glass processing companies”, as it is in A press release from the EU Commission published on Sunday It is said. According to the Commission’s preliminary assessment, Corning abused its dominant position and violated EU law by excluding competitors from large market areas. According to the allegation, this reduced choices for customers, increased prices and stifled innovation to the detriment of consumers.
Manufacturer provides voluntary commitments
To address the concerns of European competition watchdogs, Corning has offered a number of commitments, including waiving all exclusivity clauses in all of its current and future agreements with cell phone manufacturers and raw glass refiners worldwide. Other contractual clauses that tie companies to Corning and require them to buy more than 50 percent of their respective demand from Corning or cause their supply chain to buy from them should also be weakened. In enforcing its patents related to shatter-resistant cover glass, Corning intends to base future lawsuits only on patent infringement, not breach of contract. The company also promises not to use mechanisms such as contractual penalties to support its patent claims. The commitments proposed by Corning are intended to apply worldwide and for a period of nine years. The EU Commission has the full text of the commitments Commission’s competition website and “invites all interested parties to submit their comments within six weeks of the publication of the summary of the proposed commitments in the Official Journal of the EU”.
If those opinions show that the commitments are able to address the Commission’s competition concerns, the Commission can make those commitments legally binding on Corning. After this the company will be legally bound to comply with the proposed obligations. In case of violation, the Commission can impose a fine of up to ten percent of the company’s global turnover.
(AKN)
