European Commission Accuses Temu of Obstructing Foreign Subsidy Probe

The European Commission issued a Statement of Grounds alleging that the online marketplace Temu obstructed an inspection conducted from December 2 to 5, 2025. The surprise raids took place at the Dublin premises of WhaleCo, a subsidiary of PDD Holdings, to determine if Temu received foreign subsidies that distort competition within the EU internal market.

The commission claims Temu infringed its duty to cooperate by failing to provide essential information regarding its IT systems, EU organizational management, and business records. This obstruction could lead to a penalty of up to 1% of the company's total annual turnover. This action follows a separate 200 million euro fine imposed on the company in May for Digital Services Act violations.

Temu has categorically denied the allegations, asserting that it cooperated fully with all requests during the inspections. The company rejects the claim that it received distortive foreign subsidies, stating that its EU operations are funded by sustained cash flows from its own operating activities. While the commission maintains that the lack of information hindered its investigation, it noted that these specific obstruction allegations do not prejudge the final outcome of the broader foreign subsidy probe.