By Julian Castillo
Nov 10, 2024, 18:40 PM EST
The authorities of the European Union (EU) have launched an antitrust investigation against Corning, Apple’s main supplier of glass for electronic devicesdue to alleged practices that could limit competition in the market. This investigation is key, since Corning not only supplies Apple, but has signed exclusive agreements with other device manufacturers, which could be affecting other companies’ access to the market and raising prices for end consumers.
Why investigate Corning?
The European Commission expressed its concern that Corning, in its dominant position, has established exclusive agreements with equipment manufacturers originals (OEMs) and with glass processing companies.
According to the Commission, these agreements could be designed to exclude other competitors from large parts of the market, which would restrict innovation and choice for consumers. Furthermore, because Corning provides exclusive materials such as Ceramic Shield for Applethis supposed monopoly may be limiting the availability of advanced technology for other manufacturers and raising the production costs of mass consumption devices.
Relationship between Apple and Corning: An exclusive advantage?
The relationship between Apple and Corning is close and longbeginning with the launch of the first iPhone in 2007. In recent years, Apple has invested substantially in Corning through its Advanced Manufacturing Fund, ensuring a long-lasting collaboration and exclusivity of technologies such as the Ceramic Shield, used in the iPhone 12 and later models.
While this benefits innovation in Apple devices, Some experts believe these exclusive alliances may be blocking other manufacturers to access similar developments in advanced materials, limiting its ability to compete on features and prices.
If the investigation concludes that Corning has violated antitrust laws, it could face significant sanctionsforcing it to modify its business practices. This would affect Apple, as the company could lose its privileged access to Corning materials or see its competitors begin to adopt similar technologies, eliminating a competitive advantage.
In addition, Apple could be affected by possible cost increases for Corning products if this supplier is forced to diversify its customer base or establish more open terms with other manufacturers.
Possible implications on the mobile device market
This case could also set a precedent in the regulation of exclusive relationships between suppliers and manufacturers in mobile technology. The EU seeks to prevent large suppliers such as Corning and influential companies such as Apple from maintaining practices that make it difficult for new players to enter the market, promoting innovation and variety of products for consumers.
This could open up new opportunities for smaller glass suppliers, driving greater competition. and potentially reducing prices in the sector.
The outcome of this research will have implications not only for Corning and Apple, but also for the structure of the mobile device market and the availability of advanced technologies for multiple manufacturers.
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