AB, TEMU'nun yabancı sübvansiyon denetimini engellediğini iddia etti

EU alleges Temu obstructed foreign subsidies inspection

Shubhendu Vimal

Mon, August 3, 2026 at 2:14 PM GMT+3 2 min read

The European Commission (EC) has issued a Statement of Grounds (SoG) to Temu owner PDD Holdings and Irish subsidiary WhaleCo, alleging obstruction of the Foreign Subsidies Regulation (FSR) inspection.

The inspection was carried out at WhaleCo's premises in Dublin from 2 to 5 December 2025.

According to the EC, it was part of a broader investigation into whether Temu received foreign subsidies that distort competition in the EU internal market.

PDD is a multinational retail and e-commerce group and operates Temu in the EU via WhaleCo.

The EC said its preliminary view is that Temu did not actively cooperate during the inspection, which it said would amount to a breach of its procedural obligations.

It said the online marketplace failed to meet several basic requests relating to the organisation and management of its European activities, the IT tools and systems used in the EU, and certain books and records connected to its EU business.

The EC said these types of requests are customary in the early stages of a competition inspection.

It added that the absence of the information stopped it from examining sources that could be relevant to the investigation.

Under the FSR, the EC can levy a fine of up to 1% of a company's total turnover in the preceding business year for refusing to submit to an inspection or for supplying incomplete books and records.

The SoG outlines the basis on which the commission plans to build a decision.

Temu is now entitled to review the commission's file and submit a response before any final decision is made.

The commission said the issuance of a SoG does not prejudge the outcome.

It also said the process is separate from, but proceeding alongside, its main investigation into whether Temu received distortive foreign subsidies, which was the original reason for the inspection.

In response, Temu said: "Temu does not agree with the commission's preliminary findings in its SoG. Temu cooperated fully and complied with all the requests the commission made during the inspection. We will analyse and respond to the SoG and trust the commission will reconsider its position.

"Temu also categorically denies having received any foreign subsidies that distort the internal market."

The latest development comes after the EC imposed a €200m ($233m) penalty on Temu in May under the Digital Services Act, saying the retailer had not properly assessed the risks associated with illegal products sold on its platform.

Temu is also dealing with legal action in the US.

Last month, Iowa Attorney General Brenna Bird filed a petition in Polk County District Court against PDD Holdings and WhaleCo under the Iowa Consumer Fraud Act, alleging deceptive data collection, routing of user information to China, and consumer fraud.

"EU alleges Temu obstructed foreign subsidies inspection" was originally created and published by Retail Insight Network, a GlobalData owned brand.