Corning’s current glass products made exclusively for Apple are exempt from EU scrutiny.
A new agreement between Corning and the European Commission will address anti-competitive marketing concerns by the company, without affecting the glass of any Apple products, such as the iPhone or iPad.
New York-based Corning supplies specialty Alkali-aluminosilicate glass (“Alkali-AS Glass”) products under the brand name “Gorilla Glass.” The product is widely used for smartphones, tablets, and other handheld devices.
The European Commission found, following a 2024 probe, that Corning used exclusive contracts and rebates to lock in manufacturers. A practice that worked to shut out competing and potential rival glass makers.
Corning has said it will make changes to its current deals with manufacturers in order to avoid any formal charges spawned from the investigation.
Apple dodged any risk of becoming involved in the now-resolved dispute — because the Commission ruled that the version of Gorilla Glass used for Apple products are derived from “special compositions and are only used by Apple.”
That special formulation, the result of a collaboration with the iPhone maker, allows the Corning glass used in Apple products to fall outside the range of the contested deals.
Apple has periodically awarded Corning research grants to further fund research into ever-tougher ceramic glass products for future iPhones, iPads, and other products. Corning is said to be working with Apple on glass for its upcoming folding products as well
Corning commits to following EU rules
Corning has now committed to “waive all exclusive dealing clauses in all its current agreements with OEMs and finishers. It also won’t use such or similar clauses that have the same effect in future agreements,” the glass maker pledged to the Commission.
The commitments also cover transparent glass ceramics — marketed as Clear Glass Ceramics. They were included in the commitments because this cover material “is likely to be used more extensively in the future by OEMs,” noted the Commission.
Corning will now “waive all exclusive dealing clauses in all its current agreements with OEMs and finishers.” It will also “commit not to use such or similar clauses that have the same effect in future agreements.”
In the European Economic Area, Corning agreed to no longer require product makers to purchase any pre-set quantity of Alkali-AS Glass or Clear Glass Ceramics. It also won’t apply conditions of “sourcing requirements” for any discounts or “price advantages.”
The agreement also includes restrictions that apply to Corning on a worldwide scale. Corning will not require companies to commit to purchasing 50 percent or more of their glass products from Corning, along with a ban on sourcing conditions for better pricing.
In addition, Corning must include a standard anti-circumvention clause in its contracts with product makers. A clause that forbids any outside-the-contract “side deals” or other methods to get around the restrictions.
For enforcing Corning’s break-resistance cover glass patents in a lawsuit, the company must only base its claims on patent infringement and not breach of contract, the agreement adds. “In addition, Corning will not use any other contractual mechanisms (e.g. penalties) to reinforce its patent claims.”
Corning will be required to communicate these changes to existing contract holders and key stakeholders such as OEMs and finishing companies. The communication of the changes must be written in either English or Mandarin Chinese.
Corning has bound itself to the new agreement for a period of nine years, with a trustee to be appointed to monitor and enforce compliance. The iPhone 17 line is expected to use a new version of Corning glass said to be even more anti-reflective and scratch-resistant.
This story originally appeared on Appleinsider
