Corning offers to waive exclusive deals in EU antitrust probe, may stave off fine
Technology
Corning offers to waive exclusive deals in EU antitrust probe, may stave off fine
BRUSSELS, Nov 25 (Reuters) - 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 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.
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 on 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% of their global annual turnover.
