On Wednesday, the European Union opened an investigation of U.S. producer Corning over attainable anti-competitive practices. Corning might not be a reputation that’s tremendous acquainted to the typical tech client, however you might be nearly actually inside touching distance of its merchandise, because it’s a number one provider of speciality toughened glass for cellular gadgets, together with Apple’s iPhone. Its Gorilla Glass branding may additionally be a contact extra acquainted.
In a press launch, the Commission mentioned it’s involved that Corning could have abused a dominant place for international provide of protecting glass screens for handheld digital gadgets, which can have resulted in distorted competitors. In the Commission’s personal phrases, Corning signed “anti-competitive exclusive supply agreements” with cell phone producers and corporations that course of uncooked glass (also called OEMs and finishers, respectively).
“The Commission is concerned that the 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 EU wrote.
The Commission mentioned it’ll now perform an in-depth investigation as a matter of precedence. There’s no fastened timeline for concluding such a probe so it stays to be seen whether or not or not the EU will affirm any breach. But if it does, penalties for competitors violations may be as much as 10% of international income.
Reached for touch upon the EU investigation, Corning spokesman Michael West mentioned: “Corning has and will continue to be committed to compliance with all applicable rules and regulations where it does business. As part of that commitment, we work with local regulatory authorities to ensure open discussion and cooperation.”
This report was up to date with remark from Corning.