Gorilla Glass swears off market manipulation

Cell phone manufacturers and buyers can hope for lower prices for shatterproof glass on screens. The US company Corning, known for its hard-to-break Gorilla Glass, has agreed to refrain from using certain anti-competitive contractual clauses. This is the result of an investigation by the EU Commission. The obligations apply worldwide to portable electronic devices with the exception of the Apple brand.

Corning was suspected of having exploited its market power to keep competitors out of the market through clauses in customer contracts. Anyone who wanted to buy Corning products was supposed to be forced to buy exclusively or predominantly from Corning and not elsewhere. This is bad for competition and can lead to less innovation and higher prices.

The EU Commission launched an investigation, whereupon Corning proposed a series of commitments in November 2024. However, these did not go far enough for the competition authority, so Corning had to make improvements. The EU Commission has now accepted the improved commitments, making them legally binding.

The commitments

• They cover not only the alkaline aluminosilicate glass marketed by Corning as "Gorilla Glass", but also transparent ceramics, which the authority predicts will gain market share. Apple devices are excluded because they are not part of the relevant market.
• Corning is deleting all exclusivity clauses from existing contracts with manufacturers (OEMs) and assemblers (finishers) and will not use any comparable clauses in new contracts.
• In the European Economic Area (EEA), Corning may not impose purchase quotas on manufacturers and assemblers, nor require them to influence their supply chain in Corning's favor.
• Outside the EEA, Corning may require at most that these customers purchase half of their glass requirements for portable electronic devices from Corning. Corning may not promise price advantages in return.
• When enforcing patent rights, Corning must limit itself to claims arising from the patents themselves. This applies to both court proceedings and arbitration proceedings. The company may not ventilate allegations based on contractual terms or use other contractual mechanisms to enforce patent claims, such as contractual penalties.

If Corning is caught violating these provisions over the next nine years, it could face penalties of up to ten percent of its global turnover. The company must inform its customers of the requirements in English and Mandarin; an independent monitor who speaks Mandarin will also be appointed. The file number of the EU Commission's competition proceedings is AT.40728.

(ds)