Corning Avoids Eu Antitrust Fine By Ending Exclusive Deals With Phone Manufacturers

Corning, nan US-based solid shaper down Gorilla Glass, has vowed to extremity its exclusive deals and different practices that nan European Commission deemed to beryllium anti-competitive successful bid to debar getting fined. If you'll recall, nan committee announced that it was investigating Corning past year, accusing it of squashing title pinch its exclusive proviso agreements, thereby driving up prices and stifling innovation. Now, nan committee has accepted nan commitments Corning offered and made them legally binding nether nan EU's rules.

When nan committee announced its investigation, it said Corning required mobile telephone manufacturers to root each aliases astir each of their Alkali-AS solid (marketed arsenic Gorilla Glass) needs from nan company, moreover ganting them rebates. Under its statement pinch nan commission, Corning has to "waive each exclusive dealing clauses successful each its existent agreements" pinch telephone manufacturers and companies that process earthy glass. Corning besides won't beryllium allowed to participate exclusive deals successful nan future.

In addition, Corning can't require manufacturers aliases immoderate of their suppliers to acquisition immoderate amount of Alkali-AS Glass from it successful nan European Economic Area. Worldwide, Corning can't require manufacturers and their suppliers to acquisition much than 50 percent of their needs from nan company. Corning's committedness will stay successful unit for 9 years, and a trustee will show nan company's movements to guarantee its compliance.

As Reuters has noted, EU fines could costs companies arsenic overmuch arsenic 10 percent of their revenue, but Corning didn't person to salary anything. "The European Commission’s investigation has been settled pinch nary fine, nary uncovering of wrongdoing by Corning, and nary worldly effect to nan company’s Gorilla Glass business aliases nan institution astatine large," nan Gorilla Glass-maker told Bloomberg successful a statement.