EU charges Temu with obstructing Dublin raid in subsidy probe

The European Commission on Friday formally charged Chinese online retailer Temu for failing to cooperate during an unannounced inspection at its European headquarters in Dublin in December 2025, escalating Brussels' scrutiny of the platform under the EU's Foreign Subsidies Regulation.

The Charges

The Commission said it "preliminarily finds that Temu has infringed its duty to actively cooperate on multiple aspects related to the conduct of the inspection." The raid took place between December 2 and December 5 at the Dublin office of WhaleCo, Temu's European subsidiary, as part of an investigation into whether the retailer benefited from distortive foreign subsidies.reuters+2

According to the Commission, Temu failed to provide information "on the organisation and management of Temu's activities in the EU and the IT tools and systems used by the company for its activities in the EU, as well as to the provision of specific books and records on the company's activities in the EU." The lack of cooperation, regulators said, prevented them from reviewing sources that could be relevant to the broader subsidy investigation.indexbox+1

Temu's Response

Temu rejected the EU's findings, asserting that it cooperated fully and complied with all requests made during the inspection. The company said it would analyze the Commission's claim and "categorically denied receiving unfair foreign subsidies," adding that its own operating activities generate sufficient cash flows to fund its EU operations.indexbox

The charges relate only to the December 2025 inspections, and Temu, which operates as a unit of PDD Holdings ↘ 1.00%, now has the right to formally respond to the Commission's concerns.

Broader Context

Temu has grown rapidly in Europe, reaching 130 million users across the 27-nation EU — nearly a third of the bloc's population. The Foreign Subsidies Regulation, which took effect in 2023, gives the Commission powers to investigate companies operating in the EU that may benefit from subsidies granted by non-EU governments, including through unannounced inspections.indexbox

The Commission stressed that the obstruction charges do not prejudge the outcome of the underlying foreign subsidy investigation.finance.yahoo