The European Union has recently concluded its antitrust investigation into Corning’s Gorilla Glass division, revealing a significant exemption for Apple. The EU’s scrutiny centered around Corning’s agreements with various smartphone, tablet, and wearable manufacturers, driven by concerns regarding their dominant stance in the alkali-aluminosilicate glass sector. The investigation aimed to address potential unfair practices, including exclusive supply agreements and enforced minimum purchase quotas that might stifle competition by confining manufacturers to Corning’s network.
EU Settlement Secures Apple’s Glass Agreement While Increasing Options for Other Manufacturers
To avert steep fines that could amount to 10% of its global revenue, Corning has proactively instituted several adjustments beneficial to its market operations. The revised agreements will eliminate exclusivity clauses and minimum purchase requirements across the European Economic Area. Additionally, Corning will impose a global cap, restricting suppliers from sourcing more than 50% of their glass from the company. Corning has also discarded monetary incentives tied to minimum sourcing, with these modifications set to last for a nine-year period under independent oversight.
Throughout the investigation, Apple has remained a spectator. The EU’s assessment concluded that the glass components utilized by Apple are custom-engineered, categorizing them as exceptions and thereby excluding them from scrutiny. This outcome allows Apple to maintain its advantageous relationship with Corning, which supplies vital materials, such as the Ceramic Shield found in its smartphones and wearables.
The outcome of this settlement not only spares Corning from potential fines but also promotes a more competitive atmosphere in the glass market for smartphones and wearables. Manufacturers will now enjoy greater freedom in selecting suppliers, enhancing their competitive edge regarding pricing and product diversity. The EU’s initiative aims to strengthen competition within the industry while respecting unique partnerships. Ultimately, this resolution benefits all involved: Apple continues its seamless collaboration with Corning, Corning sidesteps significant penalties, and increased competition is fostered within the marketplace—aligning perfectly with the EU’s original objectives.
Related Articles:
The iPhone Air Replaces Stereo Sound with a Single Speaker While the iPhone 17 Pro Stays True to High-Quality Audio
17:08
Unlocking Record-Breaking Battery Life: The eSIM Advantage of iPhone 17 Pro Available in Select Regions
16:40
A19 Pro Loses to Unreleased Exynos 2600 and Underclocked Snapdragon 8 Elite Gen 5, Multi-Core Performance Up to 18% Slower
16:15
Leave a Reply