(Bloomberg) -- Corning Inc. offered a slate of commitments in a bid to settle an European Union antitrust probe over alleged exclusive deals for its break-resistant “Gorilla Glass” in smartphone screens.
The European Commission said Monday it’s seeking views on the offer to tackle concerns the US glass firm illegally excluded rival producers from large segments of the market, cutting customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide.
The EU’s antitrust arm said Corning’s proposed remedies include waiving all exclusive dealing clauses in all its current agreements with original equipment manufacturer, or OEMs, and finishers for the supply of Alkali-AS Glass — marketed as Gorilla Glass — and not to use such clauses or others with the same or a similar effect in future agreements worldwide.
On the enforcement of Corning’s patents related to break-resistant cover glass, the company would base any claim only on patent infringement, and not on breach of contract. Corning wouldn’t use any contractual mechanisms such as penalties to reinforce its patent claims.
If industry feedback on Corning’s offer is positive, the Brussels-based commission’s next step would be to make the commitments legally binding, lifting the threat of a fine as much as 10% of annual revenue.
Corning said in a statement that it “has and will continue to be committed to compliance with all applicable rules and regulations where it does business.” It said it works with local regulatory authorities “to ensure open discussion and cooperation.”
While EU officials didn’t pinpoint any of the electronics products concerned, Corning’s website says Alkali-AS Glass is found in current devices sold by the likes of Samsung Electronics Co., Google, Sony Group Corp. and Lenovo Group. The company also has a long-standing partnership with iPhone maker Apple Inc.
--With assistance from Samuel Stolton.
(Updates with comment in penultimate paragraph)
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