The European Commission has initiated a probe into Corning for alleged antitrust practices, where the company has been accused of binding clients with exclusivity contracts to dominate the smartphone glass market. Corning's immediate response includes offering to waive all exclusivity clauses in current agreements and committing to avoid such practices in future contracts.
Corning's concessions, which include eliminating minimum quantity requirements from contracts, aim to ensure a more competitive environment in the glass industry. If the European Commission accepts these changes, they will monitor Corning for compliance over a nine-year period.
The implications of this probe are significant; if Corning fails to comply with the concessions, they could face fines reaching up to 10% of their annual global turnover, equating to approximately $1.25 billion based on 2023 figures.
Importantly, third parties will have six weeks to challenge the European Commission's ruling on Corning's concessions before they take effect, indicating ongoing scrutiny and potential for further legal disputes within the industry.
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