Corning Commits to Fair Competition Practices in Gorilla Glass Contracts

Corning, the manufacturer known for its highly durable Gorilla Glass, has announced a significant change in its business practices that aims to promote fair competition in the market for break-resistant glass used in mobile devices. Following an investigation by the European Commission, Corning has pledged to eliminate certain anti-competitive clauses from its contracts, marking a pivotal development for manufacturers and consumers alike.

The European Commission had raised concerns that Corning was leveraging its dominant market position to stifle competition through restrictive contractual agreements. Reports indicated that customers wishing to purchase Corning products were pressured to procure their glass exclusively from the company, thereby limiting their options and potentially leading to higher prices and reduced innovation.

In response to the EU's scrutiny, Corning proposed a series of commitments in November 2024. However, these initial measures were deemed inadequate by the Commission, prompting the company to enhance its proposals further. The revised commitments have now been accepted and are legally binding across the globe, with the notable exception of Apple products.

The commitments include a ban on exclusive purchasing agreements in existing contracts with manufacturers and assemblers, prohibiting similar clauses in future agreements. Additionally, within the European Economic Area (EEA), Corning will not impose minimum purchase quotas on its clients nor require them to adjust their supply chains in favor of Corning.

Outside the EEA, the company will only be allowed to request that its clients source a maximum of 50% of their glass requirements for portable electronic devices from Corning, without the promise of price advantages. Furthermore, in enforcing its patent rights, Corning must limit its claims to those directly stemming from the patents themselves in both court and arbitration settings.

If Corning is found to violate these commitments within the next nine years, it could face fines of up to 10% of its global revenue. The company is also required to inform its customers about these obligations in both English and Mandarin, and an independent monitor proficient in Mandarin will be appointed to oversee compliance.

This development is expected to foster a more competitive landscape for glass used in handheld devices, potentially leading to lower prices and greater innovation in the sector. The European Commission has emphasized the importance of maintaining competitive markets to benefit consumers and drive technological advancements.