The European Commission recently announced that it opened a formal investigation to determine if U.S.-based global glass producer Corning had abused its dominant position in the global market for alkali-aluminosilicate glass, in violation of Article 102 of the Treaty on the Functioning of the European Union (“TFEU”) and Article 54 of the EEA Agreement. Alkali-aluminosilicate glass (“Alkali-AS Glass”) is a break-resistant glass produced by Corning and others that is commonly used by manufacturers of portable electronic devices such as mobile phones and tablets to cover their displays. The Commission indicated that it was investigating whether the exclusive supply agreements Corning has with mobile phone manufacturers (Original Equipment Manufacturers or “OEMs”) and with raw glass finishers have negatively affected competition in the Alkali-AS Glass industry.
According to the Commission, Corning’s agreements with mobile OEMs appear to require them to source all or nearly all of their Alkali-AS Glass from Corning; grant rebates to OEMs that work exclusively with Corning; and require OEMs to present all competitive offers to Corning to enable Corning to match their price before the offers can be accepted. It appears that Corning’s agreements with finishers similarly include exclusive purchase obligations that require them to purchase all or nearly all of their Alkali-AS Glass or a subtype of Alkali-AS Glass from Corning. The agreements also seem to contain “no challenge” clauses that prevent finishers from challenging Corning’s patents. The Commission launched the investigation to address concerns that these agreements may be excluding Corning’s competitors from large segments of the market.
In addition to launching the investigation, the Commission separately adopted a Preliminary Assessment that summarizes the main facts of the antitrust case and identifies its competition concerns. In response, Corning can address the concerns by offering commitments in line with Article 9(1) of Regulation No 1/2003 to resolve them. If the Commission accepts Corning’s commitments, the proceedings can be concluded. This action does not necessarily determine whether a competition-related infringement has occurred, but the responding company will be legally bound to abide by its proposed commitments.
European Commission Press Release | European Commission – Competition Case No. At.40728