The European Union has officially wrapped up its antitrust investigation into Corning’s Gorilla Glass business, and Apple has emerged unscathed. While the investigation focused on Corning’s contracts with smartphone, tablet, and wearable manufacturers, Apple was exempted from the new commitments Corning agreed to.
The EU’s concern was Corning’s dominance in the alkali-aluminosilicate glass market, which raised issues over unfair practices such as exclusive supply deals and minimum purchase requirements.
These practices, critics argued, locked device manufacturers into Corning’s ecosystem, stifling competition and leaving rivals on the outside. To avoid hefty fines that could reach up to 10 percent of its global revenue, Corning has agreed to make several significant changes. It will remove the exclusivity clause from contracts and eliminate minimum purchase obligations within the European Economic Area. Additionally, a global cap has been set that limits manufacturers from sourcing more than 50 percent of their glass orders from Corning. Price incentives tied to minimum sourcing commitments will also be eradicated, and all these changes will remain in effect for nine years under independent monitoring.
Despite these changes, Apple is not affected, as the EU has classified Apple’s glass components as custom-made, falling outside the scope of the investigation. This means Apple can continue its special arrangement with Corning, including materials like the Ceramic Shield used in iPhones and wearables.
For Corning, the settlement is a win. Not only does it avoid significant fines, but it also boosts competition in the glass market for smartphones and wearables. Manufacturers now have more flexibility in choosing suppliers, which can help with pricing and variety. In the end, the EU’s goal to foster healthy competition in the region has been achieved. Apple gets to continue its partnership with Corning, Corning avoids penalties, and competition in the glass market is set to increase.