Corning offers to waive exclusive deals to waive off EU antitrust probe

Glass maker Corning has offered to scrap all exclusive clauses in its deals with mobile phone makers and raw glass processing companies to end an investigation, EU antitrust regulators said on Monday, a move which would stave off a possible hefty fine.

The U.S. company, which sells a break resistant glass used as a cover for mobile phones, tablets and smart watches under the Gorilla Glass brand, counts Samsung, Sony, Google, HP, Dell and Nokia as its customers. Apple is reportedly a customer too.

The European Commission earlier this month launched an antitrust investigation over Corning's exclusive supply deals that may exclude rival glass producers from large segments of the market. At the time, the European Commission had said raised concerns that Corning may have distorted competition by concluding anti-competitive exclusive supply agreements with mobile phone manufacturers and with companies that process raw glass.

"The Commission is concerned that the agreements that Corning put in place with OEMs and finishers may have excluded rival glass producers from large segments of the market, thereby reducing customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide," the European Commission said earlier this month.

The EU competition enforcer said Corning has now proposed to waive all exclusive dealing clauses in its agreements and will not require mobile phone makers to buy Alkali-AS Glass from Corning nor offer them any price advantages conditional on such requirements.

As part of its proposed concessions, Corning will also drop requirements that mobile phone makers and raw glass processing companies buy more than 50% of their demand from the company.

"Corning has and will continue to be committed to compliance with all applicable rules and regulations where it does business," the company said in a response.

"As part of that commitment, we work with local regulatory authorities to ensure open discussion and cooperation."

The Commission said third parties have six weeks to provide feedback to the offer before deciding whether to accept the concessions with any finding of antitrust breaches. Corning's offer would be for nine years if accepted.

Antitrust violations can cost companies as much as 10 percent of their global annual turnover.