TECH NEWS – Apple has become an interesting exception in the antitrust investigation into its Corning Gorilla Glass business.

The European Commission has formally closed its investigation, clearing Apple of any new obligations Corning may have undertaken. The EU uncovered and investigated Corning‘s contracts with various smartphone, tablet, and wearable device companies due to concerns about Corning’s dominant position in the alkali aluminum silicate glass market. Regulations prevent unfair terms, including exclusive supply agreements and minimum purchasing requirements. Such practices could harm competition by locking equipment manufacturers into Corning’s ecosystem and foreclosing competition in the glass market.

To avoid heavy fines of up to 10% of its global revenue, Corning implemented remedies that allow it to operate without sacrificing revenue. The company has decided to remove the exclusivity clause from its contracts and eliminate the minimum sourcing requirement in the European Economic Area. The company has also introduced a global restriction that prevents manufacturers from ordering more than 50% of their glass from Corning. The company has removed price incentives for minimum sourcing obligations. All of these changes will remain in place for nine years under independent oversight.

Apple has been watching the whole affair from the sidelines, so any changes will not affect the company. The EU has classified Apple’s glass components as custom-made with a composition that falls outside the scope of the investigation. Apple has a special agreement with Corning, which supplies materials similar to the Ceramic Shield used in Apple’s smartphones and wearables. Apple and Corning are both safe for the time being because the agreement avoids EU fines and boosts competition in the smartphone and wearable glass market. Additionally, manufacturers now have more flexibility in choosing suppliers, giving them an advantage in terms of pricing and selection.

The EU aimed to foster healthy competition in the region by recognizing unique industry relationships. In the end, all parties got what they wanted: Apple continues to do business with Corning unhindered; Corning escaped heavy fines; and the region has healthy competition, which was the EU’s proposal’s purpose.

Source: WCCFTech, EC