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Apple supplier Corning is facing a European Commission-led antitrust probe over potential anticompetitive practices related to its dominant position in the smartphone cover glass market, specifically in relation to its Gorilla Glass technology.

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The investigation centers on concerns that US-based Corning may have abused its market position by adopting exclusivity contracts to prevent rival glass makers from competing for business with mobile device manufacturers. The Commission is particularly focused on arrangements that allegedly required manufacturers to source "all or nearly all" of their specialized alkali-aluminosilicate glass from Corning.
"It is [a] 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," said EU competition chief Margrethe Vestager in a statement. "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."
Corning's relationship with Apple has been particularly strong over the years, with Apple having invested $495 million in the company through its Advanced Manufacturing Fund between 2017 and 2021. This collaboration led to the development of Ceramic Shield, which Apple describes as its "most advanced glass ceramic formulation" in the iPhone 16 lineup, claiming that it is twice as tough as competitive smartphone glass.

The partnership has yielded exclusive benefits for Apple's devices. While competitors like Samsung use standard Gorilla Glass products, including the recent "Gorilla Armor" for the Galaxy S24 Ultra, Apple's Ceramic Shield technology remains exclusive to iPhone models since its introduction with the iPhone 12 in 2020. The glass is infused with nano-ceramic crystals at high temperatures while maintaining the transparency needed for the display, cameras, and Face ID sensors.

The Commission aims to determine whether Corning's practices have led to higher prices and reduced innovation, but it has not set a deadline for the investigation's completion. If Corning is found to have violated EU competition rules, it could face significant penalties. However, the company will have the opportunity to address the Commission's concerns by offering commitments that could bring the investigation to a close.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: iPhone Glass Supplier Corning Faces EU Antitrust Probe
 
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Do these people not know that Apple invests money in to their suppliers to help fund research and product improvement? Why should they be forced to hand over their gains to competitors? 🤪

EU next month, probably, “Hey VW sorry you went all in with that EV stuff. Don’t worry though, we’re going to force Toyota to help design your new hybrids.”
 
If Apple invested nearly half a billion in Corning, they have EVERY right to use the tech developed in conjunction with that investment exclusively.
Imagine this conversation. Apple: Hey Corning, heres $500m for you to develop a new glass for us!. Corning, thanks for the cash but *uc* your exclusivity.
THat's not how business works.
 
If Apple invested nearly half a billion in Corning, they have EVERY right to use the tech developed in conjunction with that investment exclusively.
Imagine this conversation. Apple: Hey Corning, heres $500m for you to develop a new glass for us!. Corning, thanks for the cash but *uc* your exclusivity.
THat's not how business works.
But EU is not investigating Apple in this case. It's about Corning allegedly forcing manufacturers like Apple etc. to use only their product.

The Commission has concerns that Corning may have distorted competition by concluding anti-competitive exclusive supply agreements with mobile phone manufacturers (Original Equipment Manufacturers or ‘OEMs') and with companies that process raw glass (‘finishers').

source: https://ec.europa.eu/commission/presscorner/detail/es/ip_24_5681
 
What is the point of patents or innovation when the EU is just going to persecute you for using technology that you developed and market.
The investigation has nothing to do with patents. It's about Corning allegedly forcing other manufacturers to use only their products (to prevent manufacturers from making agreements with companies competing with Corning)
 
I think the second half of the article is a bit misleading. As I understand the linked EU press article, it is not about Ceramic Shield, which is exclusive for Apple. It is about contracts by Corning, requiring customers to buy all the glass from Corning.
So, is the EU going to require automakers list different windshield manufacturers to choose from when buying a car? It would make about as much sense as requiring smartphone manufacturers to give different glass options.
 
The investigation has nothing to do with patents. It's about Corning allegedly forcing other manufacturers to use only their products (to prevent manufacturers from making agreements with companies competing with Corning)
If the other companies made a product worth competing with corning, then other manufacturers wouldn't deal with corning to begin with. If the other companies make a better product, then natural competition will happen.
 
So, is the EU going to require automakers list different windshield manufacturers to choose from when buying a car? It would make about as much sense as requiring smartphone manufacturers to give different glass options.
Nothing is wrong with using a single supplier for everything. A lot is wrong with that supplier requiring you to use them for everything in order to supply you anything. And for those conspiracy theorists who believe this is being done to hurt US business, EU imposes this on EU companies _all the time_. As others have said, this is not a case against Apple but against Corning.
 
This has been repeated ad nauseam for as long as I can remember. With India and China placing stipulations on what you can do in THEIR countries I'd be very surprised if a few years from now we'll have call for, 'Stop selling outside the US'.
India dropped theirs and China only places stipulations on business agreements where encryption/privacy is concerned. That’s why China’s requirement for all 5G devices to have RCS enabled was met with “ok” by any companies making phones that wanted to sell those phones in China. The EU has gone farther than China in this area, which is not something I would have ever expected.
 
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"EU accuses company of smart business moves. More at 11!"
“Smart business moves” can still be anti-competitive. That’s the whole point of regulations; to prevent businesses from making “smart business moves” that also happen to be anti-competitive.

What’s good for a company isn’t necessarily good for the market as a whole or for society.
 
But EU is not investigating Apple in this case. It's about Corning allegedly forcing manufacturers like Apple etc. to use only their product.

The Commission has concerns that Corning may have distorted competition by concluding anti-competitive exclusive supply agreements with mobile phone manufacturers (Original Equipment Manufacturers or ‘OEMs') and with companies that process raw glass (‘finishers').

source: https://ec.europa.eu/commission/presscorner/detail/es/ip_24_5681
Good correction on what is actually being investigated. But it's hard to imagine Google/Samsung/Nokia not being able to find other glass suppliers. Maybe even help them 'innovate' higher quality glass, as Apple did. Or build your own.
 
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If the other companies made a product worth competing with corning, then other manufacturers wouldn't deal with corning to begin with. If the other companies make a better product, then natural competition will happen.
Pretty much. The reason why companies enter into these agreements is to get a better price for a good product. If someone comes out with a better product, those same companies would enter into similar agreements with THOSE glass makers.

The EU’s idea of “competition” actively drove companies that COULD compete out of the union. Rather than realizing that and changing their stance, they’re continuing to show how dangerous it is to do business in the region.
 
Pretty much. The reason why companies enter into these agreements is to get a better price for a good product. If someone comes out with a better product, those same companies would enter into similar agreements with THOSE glass makers.

The EU’s idea of “competition” actively drove companies that COULD compete out of the union. Rather than realizing that and changing their stance, they’re continuing to show how dangerous it is to do business in the region.
This is absolute nonsense. The whole point is that Corning potentially uses unfair contracts specifically to lock out the competition, regardless of the quality of their products or competitiveness of their pricing.

The EU wants to ensure that the competition actually has a chance to compete on price, quality, or innovation. And not be locked out of the market completely just because the dominant company has contracts forbidding their customers from buying elsewhere.
 
“Smart business moves” can still be anti-competitive. That’s the whole point of regulations; to prevent businesses from making “smart business moves” that also happen to be anti-competitive.

What’s good for a company isn’t necessarily good for the market as a whole or for society.
Then the rest of the market needs to work harder to catch up.
 
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