On Wednesday, the European Union opened an investigation of U.S. manufacturer Corning over possible anti-competitive practices. Corning may not be a name that’s super familiar to the average tech consumer, but you are almost certainly within touching distance of its products, as it’s a leading supplier of speciality toughened glass for mobile devices, including Apple’s iPhone. Its Gorilla Glass branding may also be a touch more familiar.
In a press release, the Commission said it’s concerned that Corning may have abused a dominant position for global supply of protective glass screens for handheld electronic devices, which may have resulted in distorted competition. In the Commission’s own words, Corning signed “anti-competitive exclusive supply agreements” with mobile phone manufacturers and companies that process raw glass (also known as 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 said it will now carry out an in-depth investigation as a matter of priority. There’s no fixed timeline for concluding such a probe so it remains to be seen whether or not the EU will confirm any breach. But if it does, penalties for competition violations can be up to 10% of global revenue.
Reached for comment on the EU investigation, Corning spokesman Michael West said: “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 updated with comment from Corning.
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Natasha is a senior reporter for TechCrunch, joining September 2012, based in Europe. She joined TC after a stint reviewing smartphones for CNET UK and, prior to that, more than five years covering business technology for silicon.com (now folded into TechRepublic), where she focused on mobile and wireless, telecoms & networking, and IT skills issues. She has also freelanced for organisations including The Guardian and the BBC. Natasha holds a First Class degree in English from Cambridge University, and an MA in journalism from Goldsmiths College, University of London.
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