Corning's Gorilla Glass Under EU Antitrust Investigation (theverge.com)
(Wednesday November 06, 2024 @11:05AM (msmash)
from the tussle-continues dept.)
- Reference: 0175417631
- News link: https://slashdot.org/story/24/11/06/1532254/cornings-gorilla-glass-under-eu-antitrust-investigation
- Source link: https://www.theverge.com/2024/11/6/24289450/corning-eu-antitrust-investigation-gorilla-glass
The European Commission has [1]opened a formal investigation into Corning to determine whether it has broken antitrust rules with its dominant Gorilla Glass product. From a report:
> Corning's Alkali-aluminosilicate glass is used to protect most of the top phones and tablets, with both Samsung and Apple using it extensively across their range of devices. The EU is concerned that Corning has used a variety of exclusivity contracts to exclude rival glass makers from the phone market. "It is very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in the production of the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass," says outgoing EU competition chief Margrethe Vestager.
>
> "We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, thereby depriving consumers from cheaper and more break-resistant glass." The Commission's concerns are centered on the agreements with mobile device makers and companies that produce raw glass. The EU is looking into exclusive sourcing obligations that have required device makers to source "all of nearly all" of their glass from Corning, enabled rebates for exclusivity deals, and forced device makers to report on competitive offers and only accept them if Corning failed to price match.
[1] https://www.theverge.com/2024/11/6/24289450/corning-eu-antitrust-investigation-gorilla-glass
> Corning's Alkali-aluminosilicate glass is used to protect most of the top phones and tablets, with both Samsung and Apple using it extensively across their range of devices. The EU is concerned that Corning has used a variety of exclusivity contracts to exclude rival glass makers from the phone market. "It is very frustrating and costly experience to break a mobile phone screen. Therefore, strong competition in the production of the cover glass used to protect such devices is crucial to ensure low prices and high-quality glass," says outgoing EU competition chief Margrethe Vestager.
>
> "We are investigating if Corning, a major producer of this special glass, may have tried to exclude rival glass producers, thereby depriving consumers from cheaper and more break-resistant glass." The Commission's concerns are centered on the agreements with mobile device makers and companies that produce raw glass. The EU is looking into exclusive sourcing obligations that have required device makers to source "all of nearly all" of their glass from Corning, enabled rebates for exclusivity deals, and forced device makers to report on competitive offers and only accept them if Corning failed to price match.
[1] https://www.theverge.com/2024/11/6/24289450/corning-eu-antitrust-investigation-gorilla-glass
I think ... (Score:2)
.. the EU is correct here. In spite of a need for governments to stand aside and stay out of private contracts, exclusive agreements aren't (or shouldn't) recieve the protection of civil law. Contracts are an agreement to provide some defined consideration in return for the delivery of some defined good or service. "All your stuff" isn't really a definition of quantity or performance and should invalidate a contract. While volume discounts are OK, they need to be defined in terms of fixed quantities.