Corning Ends Exclusive Deals To Avoid EU Fine

📱 Corning Dodges EU Antitrust Bullet With Exclusive Deal U-Turn

Gorilla Glass maker Corning has managed to avoid a hefty fine from the European Union by agreeing to end its exclusive supply deals with smartphone manufacturers. The company was accused of using these contracts to stifle competition and drive up prices, but now it's promising a more open playing field for rivals.

So, what does this mean for consumers? Could we finally see more affordable smartphones with alternative glass options?

🧐 The Exclusive Deal Situation

Here's the rundown: Corning, known for its durable Gorilla Glass used in countless smartphones, was under fire from the EU. They alleged that Corning required phone manufacturers to source a significant portion of their Alkali-AS glass (the stuff making up Gorilla Glass) exclusively from them. This included offering rebates and essentially locking out competitors.

🚫 The EU's Concerns

• ✅ Limited competition, leading to higher prices for consumers.
• ✅ Reduced innovation as competitors were unable to challenge Corning's dominance.

🤝 Corning's Solution: A New Era of Transparency?

To avoid a potential fine (which could have reached up to 10% of its global revenue!), Corning agreed to some significant changes. Here's what they promised:

🔑 Key Commitments

• ✅ Waiving all exclusive dealing clauses in existing contracts with phone manufacturers and glass processors.
• ✅ No entering into new exclusive deals in the future.
• ✅ No requiring manufacturers or their suppliers to purchase a specific quantity of Alkali-AS glass from Corning within the European Economic Area (EEA).
• ✅ Worldwide, Corning can't require manufacturers and suppliers to buy more than 50% of their needs from them.

These commitments will be in place for nine years, and a trustee will monitor Corning's actions to ensure compliance.

🤔 What Does This Mean for You?

This is a significant development for the smartphone industry. Consumers could see:

• ✅ More affordable smartphones as competition increases.
• ✅ Greater innovation as new glass technologies emerge to challenge Gorilla Glass.

While it's too early to say how this will all play out, Corning's change of heart could lead to a more dynamic and competitive smartphone market.

❓ What are your thoughts on this?

Let us know in the comments below!