The European Union's antitrust regulator has been investigating Corning, the manufacturer of Gorilla Glass, over concerns of alleged exclusive dealing practices. In response, the US-based company has offered a series of changes to its contract clauses in an effort to settle the probe and avoid potential penalties.

Corning, a key supplier to major electronics brands such as Apple's iPhone, is seeking to address the EU's concerns by waiving all exclusivity clauses in its current agreements with device makers and finishers for the supply of Alkali-aluminosilicate glass (Alkali-AS Glass). The company is also committing not to use such clauses or similar effects in future agreements worldwide.

The proposed changes also aim to prevent Corning from requiring device makers to purchase or source a certain quantity of Alkali-AS glass from its own business for devices intended to be sold in the European Economic Area (EEA). Additionally, the company is promising not to offer price advantages conditional on such requirements.

Furthermore, Corning is proposing not to require device makers to buy more than 50% of their respective demand for Alkali-AS Glass, lithium aluminosilicate glass (LAS Glass), or clear glass ceramics from its business. The company will also not offer price advantages conditional on such purchasing requirements.

The proposals also extend to third-party companies that process raw glass, known as finishers. Corning is offering not to require finishers to buy more than half their combined demand for sodium aluminosilicate glass (NAS Glass), LAS Glass, and clear glass ceramics from its business. The company will also not condition price advantages on such purchasing requirements.

In addition, Corning is committing to basing any patent infringement claims solely on patent infringement, rather than breach of contract. The company will also not use contractual mechanisms, such as penalties, to reinforce patent claims.

As part of its proposal, Corning is committing to communicating with device makers and finishers to explain the changes to its business terms, including in English and Chinese Mandarin.

The European Commission is now soliciting industry feedback on Corning's offer, with comments able to be submitted for around six weeks. If the EU accepts Corning's proposals after this market test, the bundle of commitments would be made legally binding on the company, applicable worldwide, and remain in force for a period of nine years. Implementation would be monitored by a trustee that would report to the Commission, with any breaches of the commitments risking major fines.

The EU's antitrust investigation into Corning's practices highlights the importance of fair competition in the technology industry. If Corning's proposals are accepted, they could have significant implications for the company's business practices and the wider industry. The outcome of this investigation will be closely watched by industry stakeholders and regulators alike.

In the context of the global technology industry, the EU's investigation into Corning's practices serves as a reminder of the need for companies to ensure their business practices comply with antitrust regulations. As the technology industry continues to evolve, it is likely that regulators will remain vigilant in ensuring that companies do not engage in anti-competitive practices that could stifle innovation and harm consumers.